Linked In
News In
Markets Extra
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

December makes poor stab of bringing festive cheer to ag bulls

Twitter Linkedin eCard

Prospects are not looking good for the idea of December providing the spark for a “breakout” higher in grain prices.


At the start of this month, Bloomberg Intelligence said that “agriculture prices face a key test in December”, after “recovering slightly from US harvest pressure in November”.


The test ran so.


“If the Bloomberg [Bcom] agriculture spot index can sustain a gain in the last month of 2017, it would be the first December gain since 2011 and indicate a potential longer-term bottom” for prices.


“If not, the trend is likely to remain the same, with prices drifting lower on rapidly increasing supply.”


‘Talk about the old days’


The prize for bulls is a substantial one.


“A two-decade extreme narrow trading range in the grains indicates a potential breakout soon, historically favouring higher prices,” Bloomberg Intelligence said.


However, with one-third of the month gone, bears are most definitely in the ascendancy.


The Bcom ag index in early deals on Monday touched 47.3898 – falling below 47.5 for the first time on records going back to 1991.


And some investors see much to be gleaned from the experience of times gone by.


“Some talk about the old days and how low volatility, highly supplied markets trade,” said US broker Benson Quinn Commodities.

Twitter Linkedin eCard
Related Stories

Evening markets: Ags outperforrm broader commodities for once, despite cocoa tumble

Agricultural commodities close higher overall, helped by the likes of corn, cotton and soymeal - but not wheat, which suffers after poor US export data

How opposing Argentine, EU forces are distorting oilseed markets

Soymeal futures have had a strong 2018 so far, thanks to Argentine dryness fears. But for vegetable oils, gains have elusive - leaving the likes of soybean and rapeseed markets pulled both ways

Grain and oilseeds market view from Europe

EU wheat export prospects... UK wheat exports hit lowest since 2001-02... but corn imports strong... purchases from Ukraine...

Evening markets: India helps cotton rise close to 8-month high, but spoils sugar market

... with ideas of a return by exports to India helping send white sugar prices to a two-year low. In grain markets, winter wheat outperforms spring
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069