Volatile Morning for Ag Markets
Feb 29, 2012
All Agriculture markets are higher.
Soybeans are leading the way again this morning as they continue to make new highs. Soybeans are attempting to close higher on the day for the 8th consecutive day. There is an ongoing battle between fundamental and technical factors and fundamentals say the market should go higher while technicals insist the market is overbought. Recent gains are being offset by producer selling at these levels.
Old crop corn futures are 3c higher in early trade. Traders note that the market is following soybeans, but is being offset by farmer selling as the basis has improved. A stronger dollar today is also limiting a corn rally. Crude oil is also a major factor in the price of corn as ethanol is the #1 use for corn. Analyst say that as long as Crude is above $105/barrel corn will be bullish. Crude oil is currently down .80 at $105.75.
Outside markets have been extremely volatile today. Gold Futures were down as much as $80/oz and silver was down $3.35/oz at the session lows. The US Dollar is up .33 at 78.63.
Feeder Cattle and live cattle are stronger this morning. There was light trade yesterday afternoon at $128 which caused cattle to rebound after yesterday's selloff.
Call me with questions or comments (877) 431-9805.
Justin R. Lewis, MBA
Follow me on Twitter: @jlewis58
There is a significant risk of loss when trading futures & options contracts. Investors should carefully consider whether trading futures is appropriate based on their own financial situation.