AM Comments 11/06/12
Tuesday, November 6, 2012, 8:21 amSubmitted by: Dustin Weiner
Good morning!
Our markets are higher this morning - corn, wheat and soybeans all trading above yesterday’s close. The strength appears to be coming from the cash market. Corn and soybean basis is still historically strong and with farmer selling still bordering on non-existent it looks to stay that way for the near term or until flat price gives producers incentives to sell.
It may be important to remember that our futures markets have proven before that they can ignore the cash market – letting the basis and spreads do the work. This year, with the still-large demand sector and the short supply situation that may be tougher to do. The wild card is of course the managed money – if it doesn’t find an obvious reason to come play (like it did with the drought last summer) rallies could be difficult to create/sustain.
The outside markets are friendly this election day, financial markets and commodities in general are higher while the dollar weakens a touch. Overall this market should remain quiet until the USDA sets off a few fireworks this Friday morning with the Nov S&D.
Below this email are a few technical charts as of yesterday’s close for those who are into that sort of thing…
Currently
Corn is 2 to 4 cents higher
Soybeans are 9 to 12 cents higher
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