Grain Futures Struggle with Dollar Strength
Nov 01, 2011
Good Morning! Paul Georgy with early morning comments for November 1, 2011 at 5:20 am. Grain markets fall as the dollar surges higher overnight. The risk-off attitude has all commodities showing red this morning. Trading volume was on the lighter side yesterday as the third largest volume clearing firm at CME filed for bankruptcy. The question still remains whether there will be liquation or will positions be transferred to another firm. On the financial front the Fed will be releasing minutes of their meeting on Wednesday, the ECB will hold a news conference on Thursday and the G-20 will meet this week. Important US economic data will be released on Friday. The USDA monthly report next Wednesday at 7:30 AM which is getting a friendly bias as trade will be looking for lower yields and lower ending stocks. South American weather is ideal and Australia is looking for a bumper harvest. Ukraine is still in need of some rain. Corn harvest is 78% and soybeans 87% complete. The livestock traders are looking for help from the stock indexes while waiting for cash to trade this week. The stronger dollar is raising concern over potential exports. The dollar is up 1.06, crude is down 2.09, gold is down 21.90 and the stock indexes are lower.
Corn dipped below the current uptrend today, but managed to settle just above it. This market is consolidating in a range between 6.30 and 6.60. The longer we stay in this range the more accelerated the breakout move…Monica Moehring from Noblesville, IN office.
Nelson Notes from desk of Rich Nelson
Over the weekend, Japan’s finance minister gave orders to intervene in the foreign currency market. They bought the US dollar and sold Yen in an effort to stop "…one-sided and speculative movement". The Yen got to levels not seen since World War II. A rebounding US dollar is negative to energy markets and grains.