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Would you like market prices sent to your cell phone daily? We can text the markets to you 3 times a day to help keep you aware of market direction.
And it’s FREE!!
Contact Scott, Mike, or Seth at 618-243-5293 to get set up.
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Archived Market Commentaries:
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Date:
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Jan. 15, 2010
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Headline:
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Closing Grain Comments
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Comments:
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Still responding to Tuesday's negative USDA supply outlook, managed funds continued to liquidate grain futures on Friday. Unlike earlier in the week, however, index funds weren't in the market to add offsetting buying power. The result: grains remained under pressure right into the close. Corn & soybean futures still remained just above their post-report price lows, but March CBOT wheat sagged to its lowest close since Oct 12 today. Weekly grain performance was awful. March corn futures settled with losses each day this week, crashing down 51.5c for the week. March soybeans dropped on four of five days this week, ending 48c lower versus last Friday. Although it managed two small up-days this week, March CBOT wheat still crashed 68.75c lower this week as the down days were measured in double-digits. Friday, March corn futures dropped 9.5c, March beans lost 10c, & March wheat declined 17.75c.
Today's grain losses were influenced by overall bearishness in equities & other commodities. As the US dollar nearly reversed its early week losses, stocks posted their sharpest decline of 2010 & gold, crude oil, & gasoline were also solidly lower. Not coincidently, those latter commodities are widely included in commodity indexes along with grains. Speculative liquidation in one market thus spills over to grains, too. This afternoon's Commitments of Traders reports showed widespread index fund buying in the week ended Tuesday, but also widespread liquidation of managed fund ownership in soybeans, soyoil & wheat. Corn probably showed less liquidation simply because corn futures locked limit down, preventing a Tuesday exit. Sharp downward reversals in crude oil, orange juice, & gold made this a very bad week for many speculative funds as well as those with unsold grain.
Markets are closed on Monday for the Martin Luther King, Jr. Holiday. Electronic grain trading won't resume until 6 pm on Monday night. Top Ag elevators will be open regular hours for business on Monday.
Corn & soybean basis levels 4c eroded Friday afternoon & wheat basis was steady ahead of the 3-day weekend. Early morning saw some terminals pushing their basis bids to get February delivery grain, but that effort was completed by mid-day. For the week nearby corn dropped 47c, spot soybeans lost 51c, & wheat lost 42c as steady/firm basis helped offset CBOT losses.
Would you like CBOT futures prices reported to your phone? Top Ag can send you nearby & harvest futures prices for corn, soybeans & wheat at 9:45 am, 11:15 am & 1:45 pm each day. We provide the service for free, but you may have to pay for text messages--depending upon your phone plan. Give Scott, Mike or Seth a call at the Okawville elevator at 243-5293 & we'll get you set up!
"Closing Comments" are written by David Marshall, Toay Commodities Futures Group LLC, Nashville, IL. To learn more about his farm marketing advisory or commodity brokerage services, contact him at dmarshall@tcfg-llc.com or call (618) 327-4370 (voice/fax) or (618) 314-0918 (cell). This commentary is not intended for specific trading strategies. We strive to insure this information is reliable, but we cannot guarantee its accuracy or completeness. Commodity trading involves risks. You should fully understand those risks before trading.
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