Grains Slow Overnight...
Nov 22, 2011
· Grains rebounding slightly overnight after posting new lows for the move yesterday; Dec corn hovering near $6, soybeans can’t find support
· Corn 96% planted vs. 93% last week and 88% on avg; Winter wheat 50% good-excellent, unch from last week
· Avg Midwest ethanol profitability remains at historically high levels, near 40-50 cents per gallon or $1.20-1.40 per bushel, according to LSN
· Ukraine to plant 2.3 mil/hec of spring grain due to weather damage to winter crops
· Brazil soybean planting 71% complete vs. 58% lw
· Export Sales delayed until Friday due to Thanksgiving Holiday
· Outside markets supportive this morning with equities, crude and metals higher, $US lower
· Slow news day, overall
Grains were trying to find a reason to bounce overnight, and were barely able to trade past unchanged. The market is certainly not “out of the woods” yet, however we wouldn’t be surprised to see a slightly retracement of recent losses as shorts cover positions ahead of the holiday. There is a good chance that both Dec corn and Dec wheat finish near $6 on Friday’s option expiration. Very slow news day.
Straits Financial does futures/options business for farms, feedlots, elevators and processors. Call Joe Vaclavik today to find out how they can help you! (312) 462-4438 or jvaclavik@straitsfinancial.com
