Grains Bounce Off Technical Support
Oct 30, 2012
Grains are trading higher in Chicago, at the time of this post up 7 cents on DEC corn, 13 1/4 cents on NOV soybeans, and down 1-3 cents on Wheat. Keep in mind tomorrow is FIRST NOTICE day for the November soybean contract so it is time to start rolling to a more deferred month. Hurricane Sandy continues to dominate headlines and keep a lid on volume in the grain market. NYSE is closed once again today, and we have news that Wednesday's EIA ethanol numbers will be delayed. Expect trading to open tomorrow on both NYSE and NASDAQ.
South America remains extremely wet as producers struggle to get corn and soybeans planted. Today Oilworld voiced concern over South American soybean production expectations in light of the slow pace of planting. Piling on the bullish news for soybeans was the Chinese Ag Minister pegging their soybean crop at just 9.8 MMT, nearly 3 MMT lower than the USDA's expectations.
Wheat continues to trade at the low side of its recent range, with the 100 day moving average sitting at 854 on the December contract. A similar situation is shaping up with corn now trading against the 100 day moving average which sits at 735.
Tune in to GrainTV for a complete breakdown of today's action! (double-click for full screen)
THERE IS A SIGNIFICANT RISK OF LOSS IN TRADING FUTURES AND OPTIONS.
FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS.
PLEASE READ OUR RISK DISCLOSURE.