Can Euro Zone Stability Propel the Grains Higher?
Oct 26, 2011
Corn, soybeans and wheat all traded lower today as uncertainty about the Euro Zone debt resolution weighed on prices. December corn, again, traded above 650 for a time in the overnight session only to fall 13 ½ cents to finish the day at 637 ¼. A rather large 22 ½ cent range was traded. With harvest wrapping up in some areas, producer selling has picked up and will weigh on prices in upcoming sessions.
Soybeans finished at the lower end of a 23 ½ cent range, ending the session off 14 cents at 1219 ¾ on the January contract. Pressuring the market lower is a nearly complete harvest and a quickly advancing South American planting. A slightly stronger dollar contributed to the losses.
Wheat was the leader to the downside in the grain pits losing 16 ¾ cents on the December CBOT contract to finish at 619 ½. A wide 26 ¾ cent range was traded. A stronger dollar and anticipation of weak export sales tomorrow sent the market lower. Egypt continues to snub the U.S. for its import needs with their most recent purchase going to Argentina.
The equity markets reacted positively to news out of Europe as it pertains to their debt crisis. A sharp rally in the outside markets could raise demand prospects for the grains sending dollar index lower and prices higher. Export sales are released tomorrow before the day session and it will be interesting to see if China is a featured buyer.
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