We are kicking the day off lower, the macro markets are all bearish this morning. The negative news is coming from Spain as Spanish bonds continue to tumble and their GDP fell .4%. Because of this the $US is sharply higher while crude oil is down over $1.50, gold is down over $15, and the Dow futures are 140 points lower. Not pretty.
If we are to mount a recovery today it could be due to strength in the cash markets. Farmer selling is nearly non-existent in both corn and soybeans and basis is strong and getting stronger. These lower prices not only discourage farmer selling but they also could encourage additional demand. That is all well and good for nearby but it could cause a violent swing in values later on in the year if it doesn’t change
So for today expect everything to remain under pressure – all eyes are on EU economic problems. Because of that, today could be classified as a ‘risk-off’ day for many traders.
Currently
Corn is down 5 to 7 cents
Soybeans are down 12 to 16 cents
http://www.fccoop.com/markets/information.cfm
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