Another Slow Overnight Session; USDA on Wednesday...
Nov 07, 2011
AM Grain Update
· Another quiet overnight session in the grain markets; Tight ranges in corn, soy and wheat contracts as recent consolidation pattern continues ahead of Wednesday’s USDA report
· Average Trade Guesses for Wednesday:
o Corn: 147.7bpa vs. 148.1 in Oct; 795mil/bu vs. 866 in Oct
o Soybeans: 41.4bpa vs. 41.5 in Oct; 182mil/bu vs. 160 in Oct
o Wheat: 817mil/bu vs. 837 in Oct
· CME Group has lowered the ratio of initial margins to 1 versus maintenance margins, lowering the cost for former MF Global customers to meet margin calls
· Outside markets are mixed with equities lower, metals higher; $USD slightly higher
· Heavy rains in W. Australia were slowing wheat harvest over the weekend
· Ukraine could lose up to 30% of its 2012 winter grain crop due to severe drought
· Technical Numbers:
o Corn (Z) Support 6.40, 6.31 Resistance 6.57, 6.61
o Soybeans (F) Support 12.00, 11.75 Resistance 12.35, 12.60
o Wheat (Z) Support 6.20, 6.00 Resistance 6.40, 6.60
· No major weather issues for S. American corn and soy producers
· Funds made no major changes according to Friday’s CFTC report
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