Outside Markets Tank on Euro-Zone Fears -- WASDE Brings Few Surprises
Nov 09, 2011
This morning's USDA WASDE report didn't bring any surprises to the grains as this screen capture shows from the Firetip platform. At the time of this post we see corn down 2, beans down 14, and wheats down 8 to 15. It looks like we are going to continue to be range bound moving forward, with downward pressure coming from a dollar index that has found support as Europe continues to wade through sovereign debt issues.
Reuters is reporting this morning that Italy's borrowing costs are reaching "a breaking point" and we have seen equity markets absolutely tank in the morning’s trade. At present the Dow, S&P 500, and NASDAQ are all down 2% or more on the day.
We look for Europe’s problems to get worse before they get better, only adding strength to an already strong dollar. Expect range bound trading moving forward with dollar strength keeping a lid on any rallies.
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