Grains Rebound after three days of liquidation. Grain futures are in recovery mode on Friday after three days of heavy liquidation on the “fear” of recession which is not based on “fact” that the grain trade will slow in the coming quarters. The blinders are off today, and the market is focusing on the prospect…
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…
Another heavy night of liquidation in commodities. Grain and commodity futures across the spectrum overnight continued their relentless and plunging action in liquidating style from index funds that is beyond a slight improvement in the weather in the short term. Since the release of the CPI two weeks ago Friday and the actions of the Fed…
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…
Threatening US and European weather takes focus. Grain futures are firm to higher this morning after a mixed overnight session. Threatening US and European weather are creating support while the outside markets have equities and energies sharply lower after yesterday’s post-Fed meeting rally. The Federal Reserve did react with a .75% interest rate hike with a…
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…
