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Ag Commodities Trade Lower as Uncertainty Looms

November 16, 2012

This information is provided by Archer Financial Services, Inc. 800-933-3996.

 

Across the board agricultural commodities sold off this week as speculators continued to liquidate long positions ahead of year end and the looming fiscal cliff. Contributing to the sell-off is an improved weather forecast for South America as well as cancellations of 10 cargoes of U.S. soybeans destined for China due to weak crush margins.

On Thursday, the Buenos Aires Cereal Exchange estimated that Argentine corn plantings were 45% complete, while soybean plantings had reached 22%. While well below last year pace, plantings are in line with historical averages. Brazilian soybean plantings are expected to have reached 65% - 70% by early next week. For the week Jan-13 soybeans were off nearly $.70 per bu. having traded down to their lowest levels since late June-2012.

Wheat prices continue to slide pressured by weak exports and lack of announced export restrictions from Eastern Europe, this despite continued deteriorating conditions for the US winter wheat crop. For the week prices were off $.40 - $.50 while spot Dec-12 wheat traded down to its lowest level since early July-2012.

While corn was down $.10 - $.20 this week, prices were able to hold key chart support just above the $7.00 level. Fueling a late week rebound are indications more global demand will shift to the U.S. as port congestion in Brazil leads to continued delays with their corn exports. Also on Friday the EPA denied a request to waive the renewable fuel standard requiring refiners to blend 13 billion gallons of ethanol into our countries fuel supply.

 

11 16 12 market movement

 

11 16 12 prices

 

11 16 12 COT

 


 

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