Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: bears grumble, but crops regroup

Twitter Linkedin eCard

Crops regrouped at the close of what has been a mixed week, amid what appeared a somewhat bearish feel among Chicago-watchers.

For wheat, "charts still looks bearish and so are the fundamentals", Dave Lehl at broker Benson Quinn Commodities said.

His colleague Jon Michalscheck raised questions over the revival in sentiment on corn.

"This week's winter storm, the first of the year appeared to have gotten most of the credit… as some within the trade were talking the possibility that yields could be reduced on the upcoming report in January due to the heavy amount of snow from the storm.

"Not sure why the trade wouldn't have realised that on Tuesday or Wednesday."

'Fund liquidation'

Meanwhile, Mike Mawdsley at broker Market1 signalled it might be a wise time to think of selling soybeans.

"If you are holding old crop beans, we better keep pushing higher or you might want to look at a put," he said.

And Justin Kelly, at rival eHedger, raised a caution flag over the whole lot.

"If the short US dollar-long commodities trade unwinds further, we could see some fund liquidation before the end of the year," he said.

"Money flow to wrap up 2009 and in the beginning of 2010 will be a major factor."

Snow stops

Still, on Friday, the money seemed to be flowing in a generally positive direction, with the storms credited for continued firmness in corn, fairly or not.

While snowfall has ceased for now, it is sufficient in many parts of the Midwest to prevent harvesters getting onto the field, and with about 1.5bn bushels of corn yet to bring in.

Corn for March added 1 cents to $3.94 a bushel as of 07:30 GMT, with the December lot up 0.75 cents at $3.78 a bushel.

Soybeans did better, up 7.5 cents at $10.34 ½ a bushel for January and 7.25 cents to $10.43 a bushel for March delivery amid with some traders ascribed to an easing of pressure from the unwinding of a long soybean-short corn spread.

And wheat for March added 3.72 cents to $5.40 ¾ a bushel, building on the positive close of the last session, huge global stocks or not.

Position squaring

Meanwhile, palm oil, for which inventories are on the wane, stood in negative territory, amid what traders attributed to positioning squaring in the run up to the end of the year. (Which doesn't promise much for the next three weeks.)

And this despite Thursday's bullish official data on Malaysian stocks, showing a 2% fall rather than the 2% rise last month that traders had expected.

The benchmark February contract stood on the Bursa Malaysia Derivatives Exchange stood 2 ringgit lower at 2,519 ringgit a tonne.


Twitter Linkedin eCard
Related Stories

Evening markets: Acreage data overshadow grain markets. But cocoa heads higher

Soyoil and soymeal complex gains, helped by Argentine weather and US biofuels talk. But corn, soybeans and wheat struggle as key data hit the radar

Millennials drive Louis Dreyfus campaign to become 'more than a merchant'

LDC throws further light on a sector shake-up which has already this week seen ADM unveil a revamp, while Cargill declared traditional crop trading "over"

Morning markets: Oilseeds find strength in Argentina, Malaysia dryness

Soymeal leads early headway in the oilseeds complex. But grains find harder to come by, despite lingering worries over US dryness

Evening markets: India emerges as surprise ag market mover, lifting cotton

... while fuelling a decline in in sugar prices. In grains, soybeans stage some revival on a drier trend in the Argentine outlook, but wheat proves mixed
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 AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069