Grain TV by Grain Hedge
Grain TV is a daily recap after the market close, providing opinions on fundamental analysis of market direction, influences and expectations. This daily program is produced by Grain Hedge, a discount brokerage firm that provides farmers and elevators with agricultural intelligence including live market quotes, cash bid data, the Grain Hedge Optimizer™ and mobile trading platforms, all for $7 commission per side. Grain Hedge provides tools to allow farmers the ability to trade when the markets move without having to wait for a broker and the information to execute a marketing strategy with confidence.
Oct 07, 2011
The markets breathed a sigh of relief this week as measures are being taken by
the EU to quell the financial failure of Greece. The Dow responded by rebounding
189.74 points this week finishing trade at 11,103.12 today. Oil hitched its wagon to the
Dow adding $4.28 a barrel to settle at $82.85 Friday. Gold is once again heading higher
tacking on $8.10 an ounce ending today at $1,630.10. The dollar index fell slightly
giving support to grain prices.
Corn has found support the last couple of sessions near the low experienced on
July 1. For the week, corn has gained 7 1/2 cents to end trade today at $6.00 on the
December contract. Look for this market to remain range-bound between support at the
$5.88 area and overhead resistance in the $6.20 area. Exports sales adding support and
were reported as 1,289,500 MT.
Soybeans continue to fall from the highs of the year set on August 31st and are
down about 21% since that day. The market has lost 18 ½ cents this week to settle at
$11.58 ¼ on the most active November contract. Little support is found until the $11.28
level and without fresh bullish news the market looks poised to test that area. Exports
sales again disappointed and were reported as 701,800 MT.
Wheat continues to struggle to find a clear direction and has lost 1 ¾ cents on
the December CBOT contract to end trade Friday at $6.07 ½. Beneficial, widespread
rains are anticipated for the Southern Plains this weekend which is much needed to get a
decent start to the winter wheat planting that is already behind schedule. Exports sales
were routine at 431,200 MT, which is up 1 percent from last week.
The grain markets are a little jittery ahead of the October 12th USDA Supply/
Demand and Crop Production reports. Corn will remain range-bound, soybeans are
poised to move lower, and wheat is left searching for a direction. Macro economic
concerns have subsided for the time being, but any fresh news from the EU could send
the markets lower. Grain traders will be focusing on yield reports and estimates ahead of
next week’s reports.
Have a great weekend.
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