Monday, May 23, 2011

Opening Grain Market Comments 5-23-11

The grain markets are called mixed to weaker this a.m. following an overnight session that started off firmer but faded weaker throughout the night on the heals a weaker outside markets lead by a firmer US dollar and crude oil pressure.

In the overnight session old crop corn was off a penny, new crop corn was off 4-5 cents, beans where down 3-7 cents, KC wheat was off a nickel, MPLS wheat was off 3 cents, and CBOT was off 11 cents.  At 8:35 outside markets have European wheat off about 1 %, equities have just opened with the DOW down 170 points, crude is off about 3.20 a barrel, and the US dollar has the cash index up 863 at 72.298.

It is very early to call; but it looks like a risk off day; which probably isn’t the best for the grains and commodities considering the amount of ownership the funds and index funds still have in our markets.

The story today is much like the past couple of week’s overall we have friendly fundamentals but the outside markets have been very hit and miss thus causing a clash between the two; add to that the volatility has created battles between the technical’s and fundamentals from time to time.  As example most of the grains have moved back up to resistance levels and reached over bought status.

Look for another day of volatile markets as we move forward.  We will have export inspections out this a.m. and this afternoon a crop progress report that is expected to show corn planting near 80 % finished.

Please give us a call if there is anything we can do for you.

Also don’t forget we will have another session of MWC Marketing Hour Round Table this Wednesday in Onida at 3:30.  We will go over some charts, strategies for marketing, and then place some mock trades; everyone is invited; but please RSVP as space is limited.

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