Corn wave count. The dynamic collapse in corn with index funds in complete liquidation mode is characteristic of wave C. The 4th wave low did not occur at 682, which in hindsight was essentially the A wave with the B wave bounce to the 78% Fibonacci number of 749 before the current implosion. Wave C…
India’s wheat crop reported smaller. Grain futures moved sharply lower overnight on a significant decline in crude oil pricing along with Malaysian palm oil. This pressed bean oil sharply lower along with canola, pushing soybeans to double-digit losses while corn drifted in sympathy with the lower gasoline prices. Wheat futures bounced from extreme oversold conditions…
Three-day weekend creates heavy liquidation. Despite searing heat forecasted for the Delta and Gulf states where corn is pollinating and the trend of below-normal rainfall, along with Russian missiles flying into the port of Odessa in Ukraine, grain futures opened sharply lower overnight and went into heavy liquidation. Active index fund selling for managers limiting…
Three-day weekend ahead creating short-covering. Grain futures are firmer to start the last day of the week ahead of a three-day weekend. Given the sensitive nature of the balance sheets, a one-bushel deviation from the USDA’s current 177 Bu/acre for corn is worth roughly $0.25 when perceptions swing. With stock markets having stabilized overnight, yesterday’s…
FED meeting announcement today at 1:00 p.m. CDT. The overnight grain trade was again softer as the liquidity drain continues on the concerns of the Federal Reserve meeting today, raising interest rates by .75% and strengthening the US dollar. The market is emotionally worrying about reduced demand because of higher rates. History does not show…
FED meeting starts today. It’s a mixed morning for grains, with wheat and corn softer while soybeans mount a mild recovery. Outside markets are stable as the Federal Reserve starts its two-day meeting today with the interest rate hike announcement tomorrow at 1:00 p.m. The trade is now anticipating a potential .75% interest rate hike….
Risk-off versus a threatening weather forecast. Grain futures opened higher last night and moved sharply higher on wheat, with corn and soybeans also finding initial strength before getting caught up in the risk-off selling in the outside markets. Stock indexes were down another 5% overnight after Friday’s massive losses from the CPI index, which was…
USDA WASDE Report 6/10/22 Ending stocks data was a touch friendly soybeans and slightly negative corn. Old and new crop wheat carry outs were mixed but within estimate ranges.
