What Will Affect Corn, Bean & Wheat Price This Week
Oct 03, 2010
I just wanted to give everyone a quick update as we prepare for another wild week ahead. These markets could be setting up just like they did in 2007 right before the big move higher.
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- The dryness in South America has broke and more rain is now in the forecast.
- Russian wheat plantings are gaining ground but still well behind schedule.
- After the close on Friday FC Stone estimated the final corn yield would be just above 159 bushels per acre. They also estimated soybeans would come in with a record setting yield of 45.8 bushels per acre.
- Informa believes we will see a record reduction in planted beans acres from the USDA.
- Ethanol approval to 15% could happen in the next few weeks.
- The funds are still long a huge number of grain contracts, and have just in the past few days started unwinding some of their long grain positions. Reports are that they where net sellers of 45,000 corn contracts at the end of the week, but still sit massively long.
- Funds are now actually short Chicago wheat by over 1000 contracts and long the KC wheat contract by more than 80000 contracts.
The bulls have certainly taken a major step back and will be looking for coverage as we head into Friday’s USDA report. Be sure to read all of my commentary this week to stay on top the action. Sign up for my FREE REPORT below.
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