This information is provided by Archer Financial Services, Inc., 800-933-3996.
There were small signs of life in the grain markets this week as corn climbed 5¢ to 18¢ higher, led by the Dec. 12 corn price rise of almost 18¢. Soybean and wheat value rose around 30¢ on the week.
The corn market struggled to find a reason to rally this week as it made mid-week highs only to slip back on Thursday and Friday. Corn continues to be plagued by lack of export demand. With Black Sea corn values near $5.85 it makes it difficult for corn to compete at higher levels, so here we sit. In addition, cash corn values began to soften on Friday, especially at the gulf. Fresh export demand will rely on Mexico buying in the face of one of the worst droughts of the last 70 years and China buying corn to replenish their grain stockpiles, neither of which have occurred to significant degree at this point.
January soybeans set their trading range for the week on Wednesday, as overnight weakness gave way to strength beginning with the 7 a.m. announcement that there would be a concerted effort by the global central bankers to cut the lending rates on U.S. dollars in order to help prop up the European economy. In addition, Wednesday saw China announce a reserve rate cut of .5%. The excitement of that announcement could not provide any substitutive followthrough into the end the week.
It is simply difficult to garner any excitement in the grain markets at this time. There has been a lot of money that has moved to the sidelines in the second half of 2011 that may very well be content to stay out of the market until 2012.
(click the charts below to enlarge)