This information is provided by Archer Financial Services, Inc. 800-933-3996.
Grain prices slid once again during the second straight holiday abbreviated session. Corn values traded $.15- $.30 lower for the week with the new crop December contract leading the decline to its lowest levels since the last trading session in June.
The soybean market traded over $.50 lower, lead by old crop values following yet another cancellation of a previous purchase by China. This cancellation was for 315,000 MT, which takes the total cancellations over the past three weeks to 1,275,000 MT of soybeans. This, combined with favorable growing conditions in South America, was the cause of this week’s price collapse.
As with the corn and soybean markets, the wheat market made its highs for the week on Wednesday on the optimism that investment money would flow back into the grains after the economic agreement reached in Washington late Tuesday night. Once it was clear that we could not hold those gains, fund selling weakened the wheat market to the tune of an over $.30 break for the week.
Weekly exports for corn remain dismal. A 100-million-bushel reduction in corn exports is expected in next Friday’s supply and demand update; however, the argument can be made for a larger cut given the current demand pace.
A short covering rally may be in the cards next week as more traders return to the grain markets for the first full week of trading in 2013. Any rallies next week and following the release of Friday’s updated USDA data may be hard fought as producers will likely be looking to meet any rally with fresh sales.