Corn Catches Bid at the Gulf, Higher Overnight...
Jun 29, 2011
· Grains sharply higher overnight lead by corn; Numerous sources reporting a significant amount of business at the Gulf yesterday afternoon; CIF catching bid after futures closed; Some looking at Mexico as a possible buyer, however no confirmations
· China bought at least 1.7mmt of US corn in the last 4 months according to grain company executives; More sales are in the pipeline, however the figure couldn’t be confirmed; Speculation is that deals will account for another 800,000mt
· Soybeans and wheat following the move in corn overnight; Short covering ahead of tomorrow’s report may continue to be a feature through the day session and tonight’s trade
· China has also been said to be a buyer of 14-16 cargoes of S. American beans for Sept/Oct shipment during the past week
· Calendar: Export Sales and Acreage/Stock tomorrow at 7:30am CST
Bears shouldn’t attempt to step in front of today’s rally. Some short covering and obvious demand has popped up. Producers can look to purchase PUT options today as new crop hedges. Rallies into the most important portion of the growing season should be looked at as opportunities to price cash grain and initiate hedge positions.
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