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Cash Grain Insights

RSS By: Kevin McNew, AgWeb.com

Kevin McNew is President of Grain Hedge and Geograin. McNew was raised on a farm in central Oklahoma and received his bachelor’s degree from Oklahoma State University, and master’s and Ph.D. degrees in Economics from North Carolina State University. For over a decade, he was a Professor of Economics at the University of Maryland and Montana State University, focusing on commodity markets. He has received numerous academic awards for his research and outreach work, and was (and still is) widely regarded for boiling down complex economic issues into easy-to-understand concepts for applied life.

 

Selling Continues to Hit Grains in New Year

Jan 03, 2013

Corn and soybean futures were hit hard by selling overnight as prospects for a bumper South American crop continue to loom over the market. As of 6 am CST, front-month corn was off 5 cents while soybeans were off 12 cents. Wheat was mixed overnight following yesterday’s steep selloff.

Corn broke below long-held support of $6.88 over night and now seems poised to fill the gap left from July 3rd at $6.83. Struggling export business continues to underpin the market. Overnight, Kuwait purchased 30,000 tons of corn from South America.

For wheat, more bearish news came out as Egypt’s GASC announced  it had purchased enough supplies from local and international sources to last until June 17 and expects to get an additional 5.5 months' of stocks from increased local wheat supplies.  India also sold wheat into the world market at a price of $318/mt or $8.65 a bushel.  By comparison, US Gulf HRW wheat is trading around $9 a bushel.

tradeonlineorbyphone

In soybeans, weather conditions continue to be favorable in South America with only small areas of extreme dryness or overly wet. All totaled, traders see little to stand in the way of a record large soybean crop from South America. Overnight, March futures traded to their lowest level since November, touching $13.72. 

Click Play to Hear the Morning Grain Call

THERE IS A SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES AND OPTIONS.
FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS.
PLEASE READ OUR FULL RISK DISCLOSURE AT GRAINHEDGE.COM.

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