Wednesday, October 19, 2011

Opening Grain Market Comments 10-19-11


Markets are called mixed this a.m. behind a choppy mixed overnight session and outside markets that are on the quite side of things.

In the overnight session corn was up 2 cents, beans where unchanged to off a penny, KC wheat was up 4-5 cents, MPLS wheat was firmer by about a nickel, and CBOT wheat was up 5 cents.  At 9:20 outside markets have the US Dollar weaker down about 290 at 76.848 on the cash index, European wheat is up a little over a ½ of a percent, equities are near unchanged also with the DOW up about 30 points, while the S & P is near unchanged, and crude oil is up about 30 cents a barrel.

Overall another day with out a lot of fresh news to effect our markets.  The biggest thing remains the overwhelming world supplies of some of our grains versus tight domestic stocks, and a lack of producer selling at a time when seasonally it is at it’s highest.  Basis continues to firm on the row crops in many areas and spreads have tightened up on the row crops as producers are able to store more then the market thought.  Longer term my personal opinion is we are going to run the risk of having too much supply sitting on top of the market; but only time will tell as demand overall for grains is good and even though eventually producers have to sell or move product; end users eventually also have to buy product.  So it really appears to be coming down to a game and right now producers are more in control then normal.

Don’t forget that we do have our MWC Marketing Hour Round Table this afternoon in Onida at 3:30.

Watch outside markets for direction and see if we ever see some selling pressure from this year’s row crop as we go forward.

Thanks

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