Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.
Corn Settles into Range
Dec 14, 2011
· Grains mostly lower overnight; Nearby March corn failed above the $6 mark yesterday and has settled back into the recent trading range
· Outsides mostly negative for ag complex with US$ slightly higher, equities/crude lower to start to the day
· Some siting South American weather issues as cause for recent strength in soybeans; Forecasters saying La Nina will likely reduce rainfall in Argentina’s main soybean producing area
· China’s winter wheat acreage was up from last year; Wheat crop there is showing good progress in most major producing areas
· Last trading day for Dec grain contracts is today
· NOPA Crush this morning at 7:30am CST; Traders expecting 140.9mil/bu vs. 141.2 in October
· Cattle-on-Feed on Friday; Analysts looking for 104% on feed, placements expected at 99%, marketings expected at 98%
After yesterday’s failure above the $6 mark in nearby corn, the grain markets seem content to settle back into the recent trading range. Many analysts believe the January crop production report will be more exciting than the December report. South American weather issues have not been enough to push the soybeans out of the recent downtrend, but could eventually cause a larger rally if they persist. Wheat should continue to follow corn, however we believe it’s only a matter of time before a major short-covering rally is seen in wheat. Longer term, we’re friendly the Nov ’12 soybean market, as price ratios will not encourage any significant amount of acreage.
Straits Financial does futures/options brokerage for farms, feedlots, elevators and processors. Call Joe Vaclavik at (312) 462-4438 for more information.