Grains Reject Rally, Down Overnight...
Nov 30, 2011
· Grains fail to hold yesterday’s rally and fall lower overnight; Corn trading 15 cents removed from yesterday’s highs this morning
· Outside markets mixed with equities higher; Outside commodities and currencies mostly flat
· Soybean export premium at the gulf were stronger yesterday; Slow farmer selling and China demand helping basis; China may have purchased US soybeans for Jan shipment yesterday
· Russia winter wheat harvest seen at 39.5mmt vs 34.7mmt in 2011
· Argentina Ag Ministry pegs 11/12 soybean output at 52-53mmt, corn output seen at 30mmt, wheat outputs at 13.5mmt
· China cut reserve requirement ratio for banks this morning as concerns over slow economy grow
· Exports tomorrow morning at 7:30am; Crop Progress Monday afternoon; USDA Crop Production on Dec 9th
· Slow news day
Dec ’12 corn and Nov ’12 soybeans are trading at a ratio near 2.1 : 1. Most producers and seed salesmen that we’ve spoken with believe that soybeans will struggle to gain any significant amount of acreage in 2012 given the current ratios. Early data from seed companies support this idea. Don’t count out the Nov ’12 soybean market, especially relative to the Dec ’12 corn.
Straits Financial provides futures/options brokerage to farms, feedlots, elevators and processors. Call Joe Vaclavik today at (312) 462-4438!