Jul 25, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin


Outlook Today

RSS By: Bob Utterback, Farm Journal

Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.

Supply and demand report forces limit-down price activity

Jan 12, 2009
The reports came in negative across the board for corn and beans which lead to limit-down price activity. The corn number was at the top of our trade expectation of 1.79 billion, this along with producers’ need for cash flow should keep the March contract under $4.20 now until confirmation corn plantings are down and some type of solid weather problem. The corn market will close today with a very large pool of unfilled short orders. This should put the corn market down on project (A). Downside risk is difficult to judge now with the fund activity but the bullish expectation of inflation seems to have subsided for now. My suggestion now is to simply wait until the end of January to early February to start buying the corn market for a spring and summer market bounce. I would suggest you focus on the December 2009 futures.

I’ve been suggesting for some time now that we are entering a period of critical highs for beans. Today’s report I believe is the beginning of a long-term downslide to some very weak values this fall. Again, I strongly urge all producers to be aggressive in selling November 2009 beans. More than likely, a $9.90 or higher price is going to be touch and go right now.  I expect day traders will be looking to sell a hard sell off in March beans on project (A) tomorrow.  As we move into late-week trading, the amount of rainfall down south will have a lot of bearing on how big a bounce we get in beans.

If you want to go over details or would like to read more daily recommendations regarding reownership or marketing strategies, email me at utterback@utterbackmarketing.com or laura@utterbackmarketing.com.
BEFORE TRADING, ONE SHOULD BE AWARE THAT WITH POTENTIAL PROFITS THERE IS ALSO POTENTIAL FOR LOSSES, WHICH MAY BE VERY LARGE. YOU SHOULD READ THE “RISK DISCLOSURE STATEMENT” AND “OPTION DISCLOSURE STATEMENT” AND SHOULD UNDERSTAND THE RISKS BEFORE TRADING. COMMODITY TRADING MAY NOT BE SUITABLE FOR RECIPIENTS OF THIS PUBLICATION. THOSE ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. ALTHOUGH EVERY REASONABLE ATTEMPT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION PROVIDED, UTTERBACK MARKETING SERVICES INC. ASSUMES NO RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS. ANY REPUBLICATION OR OTHER USE OF THIS INFORMATION AND THOUGHTS EXPRESSED HEREIN WITHOUT THE WRITTEN PERMISSION OF UTTERBACK MARKETING SERVICES INC. IS STRICTLY PROHIBITED. COPYRIGHT UTTERBACK MARKETING SERVICES INC. 2009.
 
 
Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions