Grain markets liquidate with rally in U.S. dollar 10/26/09

Published on: 17:31PM Oct 26, 2009
Dec 09 Corn
- 19 ¾    
Nov 09 Beans
986 ½ 
- 19 ½ 
Dec 09 Wheat
- 20 ¾ 
Dec 09 KC Wheat
- 18 ½
Dec 09 Min Wheat
545 ¾      
- 15  
Dec 09 Meal
- 8.5
Dec 09 Oil
- 0.31

Corn, soybeans and wheat all closed sharply lower. A sharp rally in the U.S. dollar caused a sell-off in the equities and the commodities. Managed funds have built massive long positions in the grains and commodities and we saw some liquidation today. This came despite forecasts of wet weather throughout the Midwest this week. This is a great example of how our markets have become financial instruments lately. Harvest progress came in below expectations for both corn and soybeans. Soybeans were 44% complete vs. 30% last week and corn was 20% complete vs. 17% last week. Many were looking for around 50% and 25% respectively. This could add some support to overnight prices. As I have been saying, these markets are very difficult. There are a lot of factors moving our markets that we have never seen before. The uncertainty in the fate of the U.S. dollar, and the state of the economy is causing vast sums of money to move quickly between markets. This is causing increased risks and increased opportunity... 


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