Wednesday, July 18, 2012

Steinhoff's over night comments

Below is Country Hedging's Chris Steinhoff's overnight comments

Crude oil is 30 cents lower, ethanol is 2 cents lower…gold is down $10.00, silver is 28 lower…Dow, Nasdaq and S&P futures are weaker…US$ index is 0.270 firmer

Corn….two sided trade overnight but lower this morning on a bout of profit taking and appears to be sliding further as the work day begins
                …scattered but unconfirmed rumors of China cancelling corn cargoes
                …very little rain fell yesterday/overnight…temps heat back up
                …crop is most likely smaller today than it was yesterday….
                ….signs of demand slowing may not be enough, it may be a market where we need to  put people(end users) out of business
                What price is that? $8.00, $9.00 or even $10.00…may depend on how small this crop gets
Trading 4 to 8 lower…profit taking

Soybeans….not much rain and running out of time as the crop will be earlier than most think and rains may be too late when they come
                …beans also see supplies become tighter faster than demand slows
                …China is always a threat to buy something
                …US meal sales have been very strong….china crush margins have been negative for months
Trading 2 to 5 lower

Wheat…winter wheat harvest is on downhill slide with yield reports consistently a little better than expected
                …spring wheat harvest begins in earnest in SD and scattered in MN and ND
                …expectations are for a good yielding crop…..protein expected to be high
                …japan seeks 120tmt feed wheat
                …Australia sees 9 month wheat exports at 14mmt, up 16% from year earlier
Trading 5 to 10 lower…

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