Dec 01, 2011
· Grains slightly higher overnight; Rally on yesterday’s Fed announcement pushed most major commodities and equities sharply higher, grains were not able to hold majority of the gains
· US ethanol output rose 13k bpd to 930k bpd last week, highest ethanol output since December 2010
· Export Sales this morning at 7:30am CST, pre-report estimates:
o Corn 350k-500k mt
o Soybeans 475k-825k mt
o Wheat 375k-600k mt
· China has decided not to stockpile large volume of corn from domestic market, fearing that gov’t stockpiling would push domestic prices higher
· Argentine soy crop seen at 52mmt, matching latest USDA estimate
USDA forecasting Ag exports $5 billion lower for the 2012 marketing year according to yesterday’s Outlook for US Ag Trade Report (http://link.reuters.com/jyw35s)
Despite yesterday’s rally, grain markets remain in a bearish technical setup. March soybeans will need a solid close over the 11.75-11.80 area to negate current trendline. Resistance in March corn near 6.19. In a time period where there is little fundamental news, technical trading is sometimes the best option.
Straits Financial provides futures/options brokerage to farms, feedlots, elevators and processors. Call Joe Vaclavik at (312) 462-4438 for more information.