Grain TV by Grain Hedge
Grain TV is a daily recap after the market close, providing opinions on fundamental analysis of market direction, influences and expectations. This daily program is produced by Grain Hedge, a discount brokerage firm that provides farmers and elevators with agricultural intelligence including live market quotes, cash bid data, the Grain Hedge Optimizer™ and mobile trading platforms, all for $7 commission per side. Grain Hedge provides tools to allow farmers the ability to trade when the markets move without having to wait for a broker and the information to execute a marketing strategy with confidence.
Grain Markets Getting Basted Before Thanksgiving
Nov 21, 2011
Monday was met with another large sell-off in the grain markets. December corn fell another 12 1/2 cents to $5.97 3/4, January soybeans were off 20 1/4 cents to $11.48, and December Chicago wheat lost 6 3/4 cents to $5.91 1/2. For corn, the lowest point since October 5th was hit. Soybeans hit a low that has not been seen since November 23rd, 2010 and Chicago wheat dipped to its lowest point since June 29th, 2010. Adding to the bearish tone is a bevy of negative information that includes, but is not limited to:
- interest rates on European debt continue to rise
- the Super committee failed to come to any sort of debt reduction agreement
- grain exports continue to lag behind expectations
- dollar index is relatively strong
These are just some of the issues weighing on commodity and equity markets. The next few sessions will be important for the grain markets, in particular corn, as the markets are pushing towards some key support levels. It is important to keep in mind this week that low volume is to be expected due to the holiday. With low volume comes inherently higher volatility. Also, December options expiration is Friday this week and first notice day for December contracts is approaching on November 30th. Volatility tends to increase as we near dates such as these.
The fundamental and technical landscape is not looking good for the grain markets as a whole. There are a couple of bright spots to be thankful for however. Corn basis is historically strong for this time or year and some good profit margins are available to livestock producers. Taking advantage of opportunities when they are presented is paramount to a successful marketing plan. To discuss your marketing strategies with one of our brokers, please take a FREE DEMO or give us a call at 877-472-4607.
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