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November 2011 Archive for Market Watch

RSS By: Alan Brugler, AgWeb.com

Alan Brugler is the President of Brugler Marketing & Management, and the primary analyst and advisor.

A Turkey of a Week

Nov 25, 2011

Brugler

Market Watch and Dec Corn Tech Talk w/Alan Brugler

November 25, 2011

A Turkey of a Week

The "Euro contagion" theme was in play all week.  The euro plunged below the $1.33 handle on Friday, with most of the selling coming after European equity markets had closed for the week. Interest rates for Italian and Spanish government bonds rose sharply, indicating the investors want a lot more money to hedge against potential defaults down the road. Belgium’s debt rating was also cut. Credit Default Swap premiums rose, but there are questions about their effectiveness after some banks suggested that they believed they were not liable to pay out on a Greek default. That panicked debt holders into selling more of their holdings.  How does this affect US commodities? Investors are selling what is liquid, and parking it in US treasuries regardless of whatever longer term problems the US might have. That has the dollar firmer, and commodity prices quoted in dollars lower. A firmer dollar also makes exports to countries with floating currencies more difficult (but does not affect Chinese buying because of the yuan peg to the dollar).

 

Not to be overlooked, South Korea finally was able to ratify the South Korea/US trade agreement passed by Congress and signed by President Obama weeks ago.  The agreement has more immediate impact on grains/oilseeds trade, and a more delayed impact on meat because of the structure of the tariff changes.

 

Corn was down 4.55% for the week, just a little stronger than the US stock market which lost 4.8%.  Traders tried for a 580 "pin" on the Dec corn options but didn’t quite get there. There were a large number of Dec 600 puts exercised on Friday, creating new longs in the futures market with instant losses on the positions. The IGC cut projected world corn production by 2 MMT to 853 MMT, a rare bit of bullish news. US export sales were still stuck in low gear, with several large buyers shipping grain previously labeled sold to "unknown destinations". That included more to China.  New weekly export sales were 350,000 MT of combined old and new crop.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

11/04/11

11/11/11

11/18/11

11/25/11

Change

% Change

Dec

Corn

6.5575

6.385

6.1025

5.825

0.2775

4.55%

Dec

CBOT Wheat

6.3675

6.1675

5.9825

5.745

0.2375

3.97%

Dec

KCBT Wheat

7.18

7.04

6.6725

6.435

0.2375

3.56%

Dec

MGEX Wheat

9.2375

9.3425

9.145

8.2725

0.8725

9.54%

Jan

Soybeans

12.21

11.755

11.6825

11.065

0.6175

5.29%

Dec

Soybean Meal

315.4

299.5

298.4

282.7

15.7000

5.26%

Dec

Soybean Oil

51.87

50.98

50.88

48.23

2.6500

5.21%

Dec

Live Cattle

124.5

120.55

119.7

121.1

1.4000

1.17%

Jan

Feeder Cattle

147.4

145.675

147.425

144.625

2.8000

1.90%

Dec

Lean Hogs

86.85

86.45

87.475

88.3

0.8250

0.94%

Dec

Cotton

98.54

99.24

94.9

90.82

4.0800

4.30%

Dec

Oats

3.29

3.215

3.04

2.92

0.1200

3.95%

Jan

Rice

16.125

15.22

14.68

14.235

0.4450

3.03%

 

The wheat complex ground lower again, this time with Minneapolis taking the big loss as longs got out of the way before December delivery notices. Russia and Ukraine continue to be aggressive exporters of old crop wheat. Russia has announced a price support program expected to kick in around the 28th. They have also indicated they will resume export tariffs when total grain exports get to a trigger level. Ukraine, Bulgaria and Romania are all looking at poor winter wheat stands and plantings due to drought. This could make them restrict exports in 2012 in order to ensure adequate carryover stocks. There is no sign of that yet. US weekly export sales for the week ending November 17 improved to 614,500 MTs, almost double the four week moving average.

 

Soybeans saw a 5.3% decline for the week, mostly due to a lack of speculative buy interest. US weekly export sales jumped to 921,600 MT, thanks to strong Chinese buying and other countries such as Egypt taking advantage of the price break to expand coverage. South American planting continues, with Argentina saying 46% of the bean crop there has now been planted. An estimated 25% of the Brazilian soybean area is behind on moisture, but it is early enough in the season that the crops can recover yield potential if rains develop in the next 10 days or so. China’s CNGOIC believes final 2011 imports will be 52 MMT, slightly under the USDA at 52.34 MMT but also subject to actual deliveries in November and December being different than their estimates.  It happens all the time.

 

Cotton was down a hard 4.3% for the week. Black Friday weekend retail sales in the US will provide a glimpse into US consumer buying interest. The futures market had been pessimistic about the whole world, and thus US ability to export. US weekly export sales through November 17 were actually quite good at 790,700 MT of upland cotton. China was just about the only game in town at 757,700 RB.

 

Lean Hog futures were up 82 cents for the week, the second up week in a row. The value of a hog carcass continued to decline, down 41 cents for the week. However, the "get me out" trade in commodities meant buying back of shorts in the hog market. There are also traders trying to set up a long position based on a seasonal tendency for hog slaughter to decline in December, and for the pork carcass cutout value to rise. The big "IF" in the picture is the substantial premium that cutout value current has over where it was last year or the year before. Estimated weekly slaughter was depressed by the holiday, but expected to be 13,000 head larger than last year if a projected Saturday run of 362,000 head was achieved.

 

Cattle futures were up 1.2% this past week. US beef export sales stabilized at 11,100 MT for the week ending November 17. That was a moral victory for the bulls, given the sharp increase in choice boxed beef quotes and the firmer dollar. Mexico and Canada were the two largest buyers. The reported cutout value of a choice graded steer dropped 84 cents on Friday, but is still at $196.23 and less than $5 below the all time record high set in 2003 when Canada was out of the world export market because of BSE. Estimated weekly slaughter was within 1,000 head of last year’s Thanksgiving week.

 

Call in consulting service with Alan is also available for a limited number of new customers in our Ag Marketing Professional Premium package. Call our office for details on either service at 402-289-2330. 

 

Market Watch: The market will be into turkey leftovers by Monday, and back to a full work week. We’ll start the week by working off any surprise positions inherited via the December options exercises on Friday. There was considerable open interest in the December corn 600 puts and calls heading into Friday. USDA will issue the usual Export Inspections report on Monday and Export Sales on Thursday. Wednesday will be first notice day or FND for December futures contracts such as corn, wheat, soybean meal, and soy oil. Friday will mark the expiration of the December live cattle options.

 

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited.  Call 402-697-3623 for information on our individualized subscription and consulting services.

 

 Copyright 2011 Brugler Marketing & Management, LLC

Tough Export Environment

Nov 18, 2011

Brugler

Market Watch w/Alan Brugler

November 18, 2011

Tough Export Environment

 

The main idea of the week is that exports of commodities are going to be a tough slog. As they say, high prices cure high prices. Global production is up for many commodities. Demand is rising in Asia and South America, but iffy for the EU due to all the deleveraging that is taking place and the austerity programs that are of necessity denting incomes and the spending power of consumers. US cotton exports are gradually picking up after being decimated by cancellations in August and September. Wheat exports are still in the downward mode, and net new sales for corn can’t get a lot worse. Corn is losing share to feed wheat, notably from the Ukraine. While down on Friday, the US dollar index was up for the week and working against rapid gains in exports.

Corn was crushed on Thursday, one of those tipping point moments where the bearish stars all aligned. Weekly USDA export sales were poor, there were 17 million bushels of previous sales cancelled, and December contract longs were looking to get out ahead of the holidays and first notice day. Large funds may also have been liquidating some positions to meet year end payout requirements. Ethanol remains a bright spot, with weekly production rising and thus using more corn. Ethanol stocks rose slightly to 17.11 million barrels. Ethanol exports are also strong, with corn exiting the country in liquid form. Exports do not qualify for the blend credit, and thus should not be affected by the debates about extending the Bush tax cuts and blend credits or renewing them.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

10/28/11

11/04/11

11/11/11

11/18/11

Change

% Change

Dec

Corn

6.55

6.5575

6.385

6.1025

0.2825

4.42%

Dec

CBOT Wheat

6.445

6.3675

6.1675

5.9825

0.1850

3.00%

Dec

KCBT Wheat

7.38

7.18

7.04

6.6725

0.3675

5.22%

Dec

MGEX Wheat

9.205

9.2375

9.3425

9.145

0.1975

2.11%

Jan

Soybeans

12.26

12.21

11.755

11.6825

0.0725

0.62%

Dec

Soybean Meal

317.5

315.4

299.5

298.4

1.1000

0.37%

Dec

Soybean Oil

51.77

51.87

50.98

50.88

0.1000

0.20%

Dec

Live Cattle

119.05

124.5

120.55

119.7

0.8500

0.71%

Jan

Feeder Cattle

145.6

147.4

145.675

147.425

1.7500

1.20%

Dec

Lean Hogs

86.675

86.85

86.45

87.475

1.0250

1.19%

Dec

Cotton

104.37

98.54

99.24

94.9

4.3400

4.37%

Dec

Oats

3.3625

3.29

3.215

3.04

0.1750

5.44%

Jan

Rice

17

16.125

15.22

14.68

0.5400

3.55%

 

The wheat complex still had a split personality, but this week all three exchanges were in the red. MPLS futures were down 2% for the week, with Chicago down 3% and KC down 5%. Firm demand for spring wheat in delivery position continued, with mills not importing enough Canadian wheat to cover their needs. KC protein premiums reflected strong substitution demand, but futures lost ground because of improved moisture and winter wheat crop condition ratings. All three markets were hurt by the aggressive wheat sales out of the Black Sea region, with Ukrainian feed wheat working into Japan and South Korea, while US wheat isn’t even being offered to Egypt at the present time. The EU has also lost export share, reflected in the smaller number of licenses approved to date. Russia is now hinting that it will start buying wheat for intervention stocks after Thanksgiving, trying to support prices which have not really responded to the large export removals.

Soybeans saw fractional losses in all three legs of the complex. The good news is that US soy oil stocks are shrinking rapidly, as shown in the NOPA report last Monday. Part of that is due to biodiesel plants having excellent margins and having problems keeping up with mandated use. The rest is because of a much slower crush pace than was seen in October 2010. South American production estimates are all over the map, but there is general agreement that weather to date has been favorable for planting and early crop development.

Cotton was down a sharp 4.37% for the week, despite being up more than 300 points in one session. Weekly export sales were 998,000 RB for 2011/12 delivery the previous week, but slowed to 639,600 RB for Upland cotton in the most recent reporting period. China indicated that it had been importing cotton for government stocks in October, but officials hinted that they thought they had enough for now. Mills are still the main buyers, regardless of country. Increased global supplies are making it more difficult for the US to capture the business without a downshift in US prices.

Lean Hog futures rebounded 1.2% for the week, up $1.02 after a modest 40 cents drop the previous week. The pork carcass cutout value was down 2.6% on the Thursday/Thursday basis, but popped up $1.75 on Friday to end the week only 0.35% lower. That gave bulls reason to hope that the seasonal turn is coming, with slaughter numbers likely to be reduced by the holiday, and thus reduced pork production helping to support the cutout value received by the packer. Pork production YTD is up 1.1% from last year, and in fact this week’s production is estimated to be 3.3% larger than last year.

Cattle futures were down again, but only 85 cents this week. The board remained skeptical of the $125-126 cash prices paid the previous week, and that attitude proved correct. Cash prices dropped $2-3 this week after the broad commodity sell off on Thursday. Wholesale prices remain stout, with Choice boxes quoted at $195.12 on Friday. That was up 2.1% for the week. The USDA COF report on Friday afternoon showed October marketings to be larger than expected at 103% of last year. Placements were in line at 99.44%, but with the larger marketings the November 1 on feed total was 3.7% above year ago, and thus slightly friendly to the bulls.

Call in consulting service with Alan is available for a limited number of new customers in our Ag Marketing Professional Premium package. Call our office for details on either service at 402-289-2330. 

Market Watch: This week will have a holiday attitude to it, with all major markets closed on Thursday for the US Thanksgiving. Trading activity is typically depressed, as traders take extra days for travel around the mid-week holiday. That can result in erratic price moves. The CME is open on Friday, and December options are scheduled to expire on Friday. The main reports for the week from USDA will be Export Inspections and Crop Progress on Monday, and the monthly Cold Storage report on Tuesday afternoon. Wednesday will be first notice day for December cotton deliveries. The European debt crisis overhangs all of the above, with sporadic worries about US banks or the US dollar or both.

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited.  Call 402-697-3623 for information on our individualized subscription and consulting services.

 

 Copyright 2011 Brugler Marketing & Management, LLC

Veterans Day

Nov 11, 2011

Brugler

Market Watch w/Alan Brugler

November 11, 2011

Veterans Day

 

There is an old joke, that someone is from the federal government and they are here to help you. On Friday, the federal government and the banks were closed for Veteran’s Day, leaving the markets to their own devices. With little evidence that oversight by four (4!) federal agencies helped keep the customer’s money safe at MF Global; you can forgive traders for being skeptical about federal assistance. After all, any money or resources the federal government gives you were taken from another taxpayer like you or even worse borrowed from the Chinese or Japanese. One thing the federal government is charged with is the common defense, and it is appropriate to take this moment to thank all who have served in the armed forces in the past 250 years or so. With a few exceptions like the al Qaeda attacks, Japanese balloon bombs (look it up, one of them hit Omaha), Pearl Harbor, etc, forces hostile to the United States have not been able to act out that hostility on US soil. That is a remarkable record in world events and our veterans deserve the credit.

The corn bulls’ winning streak ended this week. Price were down 2.63%, or 17 cents per bushel. Weak export sales got a lot of the blame, although USDA also saw fit to trim projected feed & residual use another 100 million bushels. Ethanol stocks are the tightest of the calendar year, with a combination of exports and domestic use sucking up everything being produced. While US whole corn exports are down, about 279 million bushels left the country as ethanol in the last marketing year, and the largest quantities of meat exports since before BSE meant additional corn left in refrigerated containers. Value added exports are good for jobs, so this is a trend we hope can be continued.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

10/21/11

10/28/11

11/04/11

11/11/11

Change

% Change

Dec

Corn

6.4925

6.55

6.5575

6.385

0.1725

2.63%

Dec

CBOT Wheat

6.32

6.445

6.3675

6.1675

0.2000

3.14%

Dec

KCBT Wheat

7.23

7.38

7.18

7.04

0.1400

1.95%

Dec

MGEX Wheat

9.1925

9.205

9.2375

9.3425

0.1050

1.14%

Nov

Soybeans

12.1225

12.17

12.125

11.66

0.4650

3.84%

Dec

Soybean Meal

316.5

317.5

315.4

299.5

15.9000

5.04%

Dec

Soybean Oil

51.25

51.77

51.87

50.98

0.8900

1.72%

Dec

Live Cattle

122.15

119.05

124.5

120.55

3.9500

3.17%

Nov

Feeder Cattle

142.725

141.1

142.575

142.15

0.4250

0.30%

Dec

Lean Hogs

89.65

86.675

86.85

86.45

0.4000

0.46%

Dec

Cotton

97.1

104.37

98.54

99.24

0.7000

0.71%

Dec

Oats

3.37

3.3625

3.29

3.215

0.0750

2.28%

Nov

Rice

16.405

16.74

15.895

15.005

0.8900

5.60%

 

The wheat complex had a split personality. MPLS futures were up 10 ½ cents for the week, with USDA confirming tighter spring wheat stocks and a little bit of a short squeeze attempt in the December contract. The other two markets were down by 2-3%, with rains aiding winter wheat crop development in the Plains and SRW continuing to struggle to get export market share. Egypt again took advantage of a futures price break. They again bought wheat from the Ukraine and Russia at prices higher than the previous purchase but well below what the US could offer. World wheat ending stocks are stubbornly over 202 MMT despite the largest projected wheat feed use since 1990.

Soybeans lost 3.8% for the week, with soybean meal down more than 5% as it competes with cheaper corn, wheat and DDGS. Soybean oil was down 1.7% and also trimmed product value. USDA hiked projected South American production by 500,000 MT, and boosted projected world stocks by a similar number. Soy oil use is strong, thanks to profitable biodiesel margins, and Malaysian palm oil stocks for October were smaller than the trade had anticipated. Soybean weekly export sales were a bright spot, exceeding trade expectations of 660 thousand tonnes. There were rumors of Chinese soybean purchases to fill their reserve stocks on Friday.

Cotton was up 0.7% for the week, thanks to a more than 300 point pop on Thursday after the USDA weekly export sales report and a weaker US dollar combined to make traders more optimistic. Weekly export sales were the largest in quite a while. They were 998,000 RB for 2011/12 delivery and 24,900 MT for 2012/13 delivery. Net Pima sales were 1,900 for 2011/12 delivery.  The term brittle cotton made the national media, short hand for drought stressed cotton out of Texas that some world buyers are trying to avoid.

Lean Hog futures were down a modest 40 cents for the week, thanks to a nice short covering rally ahead of the weekend.  The pork carcass cutout value was the lowest since June on Thursday, and that hurt cash hog prices as it ate into packer margins. It lost 3.6% for the week on a Thursday/Thursday basis. Pork belly quotes were down 8%. Cash hogs followed the cutout value lower. Futures were already expecting a lower cash hog trade, and thus didn’t have to drop as sharply but merely wait for cash to catch up.

Cattle futures were down 3.17% this week, with the down all occurring at the end of the week. Futures actually posted new all time highs a week ago, and cash trade hit new highs on Thursday at $202 in the north and $125-126 elsewhere. That didn’t stop the CME from dropping all week. December futures may be looking ahead to Thanksgiving and then the delivery period. Beef production is still depressed, down 3.6% this week vs. last week and down 5.4% vs. the same week in 2010. Those numbers are expected to turn higher as we get into late November and December, building into a late winter or spring peak as all of the light cattle placed in the lots are finished.

Looking to enhance your existing Ag Marketing Professional subscription? Add free futures market quotes sent to your cell phone via our Market Monitor service. Or "push" the daily recommendations out to your phone as they happen with Market Messenger 2. Call in consulting service with Alan is also available for a limited number of new customers in our Ag Marketing Professional Premium package. Call our office for details on either service at 402-289-2330. 

Market Watch: Cotton traders will start the week adjusting to life without December futures options, which were exercised or expired on Friday. That can add to volatility. FND is November 23 for December futures deliveries. NOPA will release their October crush report on Monday. This has taken on additional importance since the Census Bureau quit tallying crush data in a budget cutting measure. USDA will have the usual Export Inspections report on Monday and Export Sales on Thursday. CFTC data will be released on Monday, delayed by the Veterans Day holiday on the 11th when government offices were closed. The main USDA report for the week will be the Cattle on Feed report, scheduled for the 18th. November feeder cattle futures (and options) expire early this month, on Thursday the 17th.

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited.  Call 402-697-3623 for information on our individualized subscription and consulting services.

 

 Copyright 2011 Brugler Marketing & Management, LLC

Blazing Saddles

Nov 04, 2011

Brugler

Market Watch w/Alan Brugler

November 4, 2011

Blazing Saddles

 

OK, so maybe it should be Blazing Cattle. The cattle market bulls had a fire lit under them when cash cattle traded at $124 and $197 in the north early in the week. That came out of nowhere, with some southern cattle trading at $119 earlier the same day. Tight supplies of choice cattle, a solid export market (over 20 thousand MT two weeks ago and 15 thousand plus for last week), and tight ready numbers for a couple more weeks all contributed to the big jump. Estimated beef production for the week was 3.2% smaller than the previous week, and down 0.7% from year ago. Futures were up 4.58% for the week.

 

Corn extended its winning streak, rising ¾ of a cent for the week despite active selling of the nearby December contract by the DB index fund and a lackluster weekly export sales report on Thursday morning. USDA put reported weekly export sales at 622,618 MT for 2011/12 delivery. That was at the upper end of modest trade estimates. Export sales year to date are 15,364,000 MT compared to 12,797,800 MT for the same period last year. Shipments are lagging, however. US ethanol exports for September-August were the equivalent of 279 million bushels of corn being shipped out of the country. Domestic ethanol production rose to 916,000 bpd vs. 906,000 the previous week, as plants got into bigger new crop corn supplies. Ethanol stocks are tightening, and prices have been trading above gasoline in the futures market.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

10/14/11

10/21/11

10/28/11

11/04/11

Change

% Change

Dec

Corn

6.4

6.4925

6.55

6.5575

0.0075

0.11%

Dec

CBOT Wheat

6.2275

6.32

6.445

6.3675

0.0775

1.20%

Dec

KCBT Wheat

7.075

7.23

7.38

7.18

0.2000

2.71%

Dec

MGEX Wheat

8.925

9.1925

9.205

9.2375

0.0325

0.35%

Nov

Soybeans

12.7

12.1225

12.17

12.125

0.0450

0.37%

Dec

Soybean Meal

327.6

316.5

317.5

315.4

2.1000

0.66%

Dec

Soybean Oil

53.54

51.25

51.77

51.87

0.1000

0.19%

Dec

Live Cattle

123.2

122.15

119.05

124.5

5.4500

4.58%

Nov

Feeder Cattle

144.425

142.725

141.1

142.575

1.4750

1.05%

Dec

Lean Hogs

90.075

89.65

86.675

86.85

0.1750

0.20%

Dec

Cotton

101.94

97.1

104.37

98.54

5.8300

5.59%

Dec

Oats

3.4

3.37

3.3625

3.29

0.0725

2.16%

Nov

Rice

16.625

16.405

16.74

15.895

0.8450

5.05%

 

The wheat complex saw mixed results. Chicago was down 1.2% for the week, while KC fell 2.7% and spring wheat was up 0.35%. MPLS was the strongest as the long leg of spread trading and because of tight producer holding of the shrunken 2011 crop. Spread traders bet index fund liquidation of Dec positions would pressure Chicago and not MPLS, as most index funds don’t participate in the thin MGEX market. The Goldman Roll is expected to start on Monday. Egypt bought wheat from the Ukraine and Russia this week, at prices higher than the previous purchase.


Soybeans slipped a modest 0.37% for the week, 4 ½ cents per bushel. South America is making rapid planting progress, and in some areas planting is 10 days ahead of normal. China continues to buy soybeans from all sources, but the quantities shipped out of the US to date are closer to the pace of 2-3 years ago than to last year’s record early season shipments. Commercials stopped the deliveries made against November futures, spurring a rally at midweek because the trade assumed they had a market for the beans. There were also rumors of Chinese soy oil purchases for their reserves, but no confirmation.

 

Cotton was down 5.6% for the week. Weekly export sales dropped off sharply from the week before, but were still respectable at 92,029 RB for 2011/12 delivery. Sales for 2012/13 were the first in four weeks at 78,910 RB. Reports of additional abandonment in Texas are common, with insurance zeroing out the crop and producers then plowing it under.

 

Lean Hog futures eked out a 17 cent gain for the week. The pork carcass cutout value was the lowest since June on Thursday, and that hurt cash hog prices as it ate into packer margins. Futures were anticipating this drop in the cash hogs, and in fact were trading about $6 under the CME Index at points during the week. They didn’t need to drop proportionally. Estimated pork production for the week was up 2.2% from the prior week as we got into the heart of the fall run. However, it was also down 1.1% from the same week in 2010. Estimated carcass weights are still running 3 pounds below last year.

Call in consulting service with Alan is also available for a limited number of new customers in our Ag Marketing Professional Premium package. Call our office for details on either service at 402-289-2330. 

 

Market Watch: Don’t forget to turn your clocks back an hour over the weekend. The big news this week will likely come on Wednesday morning at 7:30 am CST, when USDA issues its November crop production estimates (NASS) and updates global supply and demand estimates (WASDE). Of course, fresh rumblings or positive vibes can come out of the European situation at any time. The meltdown of brokerage house MF Global was directly tied to taking an outsized speculative bet that the European debt situation would be resolved, and then not having enough capital to back up margining requirements. There will also be the usual USDA Export Inspections report on Monday and Export Sales on Thursday morning. December cotton options expire on the 11th.

 

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited.  Call 402-697-3623 for information on our individualized subscription and consulting services.

 

 Copyright 2011 Brugler Marketing & Management, LLC

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