October 7, 2010

07-20-10 Grain Market Recap

By Planet Wealth

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pstrongSoybean Complex Market Commentary for 7/20/2010 /strong/p
pAugust Soybeans finished up 3 3/4 at 1011 3/4, 2 1/2 off the high and 13 1/4 up from the low. November Soybeans closed up 1 at 973. This was 10 1/4 up from the low and 3 1/4 off the high./p
pAugust Soybean Oil finished up 0.44 at 38.4, 0.62 up from the low and 0.08 off the high./p
pAugust Soymeal settled 3.5 lower at 301.5. This was 1.5 up from the low and 3.5 off the high./p
pNovember soybeans sold off late in the overnight session and into the day session but recovered to marginally higher levels over the remainder of the day. The nearby August contract gained on November on the day and soy oil posted a sharp gain over meal. Meal traded moderately lower on the day while oil traded moderately higher. Traders said that warm and wet weather over the weekend and through the remainder of this week is causing the same sort of greenhouse effect that was so beneficial to crops last year, except that this years greenhouse is warm instead of cool. Officials in India report that improved monsoon rains with excellent distribution are improving planting conditions for crops including soybeans. The latest round of rains have reduced the overall monsoon deficit to 15% below normal for the year to date versus a 16% deficit as of last week./p
pstrongCorn Marketnbsp;Commentarynbsp;for 7/20/2010/strong/p
pSeptember Cornnbsp;finished down 7 1/2 at 374, 6 1/4 off the high and 3/4 up from the low. December Corn finished down 6 1/2 at 387 1/2. This was 1 1/4 up from the low and 5 1/2 off the high./p
pDecember corn traded lower overnight and then extended its losses to start the day session. The market then trimmed its losses during the middle of the day session before returning to near the early lows prior to the close. Traders said that warm and wet weather in the Midwest is again boosting yield expectations . Forecasts last week had called for a dome of hot and dry air over the Midwest this week, which caused some analysts to cut their yield forecasts. Instead, ample rains have fallen over the past week in most areas with todays showers helping to complete the coverage. Improved monsoon rains in India in recent days have also boosted soil moisture in areas that will be planted to corn and the Agriculture Minister said today that this should boost planting progress and the overall crop outlook./p
pSeptember Rice closed down 0.115 at 9.88 , equal to the low and equal to the high./p
pnbsp;strongWheat Market strongAnalysis/strong Report for 7/20/2010 /strong/p
pSeptember Wheat endednbsp;down 5 1/4 at 577, 4 off the high and 4 1/4 up from the low. December Wheat settled down 4 1/2 at 607. This was 4 1/2 up from the low and 3 1/4 off the high./p
pThe wheat market fell again today with the December contract losing ground to the deferred July 2011 contract in the process. Traders said that improved weather in the Midwest was causing spillover selling from corn again today, along with light pressure from a lower dollar. Otherwise, news was light today. Egyptsnbsp;buying agency – CASC – announced today that it bought 120,000 tonnes of wheat, all of it from Russia. One analyst noted that Russia still appears to have a lock on the Egyptian market despite recent weather related production losses in the Black Sea region. The US did manage to get a piece of the large wheat sale to Iraq that was announced yesterday./p
pDecember Oats finished down 4 1/2 at 263 1/2. This was 1 up from the low and 4 3/4 off the high./p
pWith todays recap talking mostly aboutnbsp;weather, traders might want to take a peek at the commercial traders momentum.nbsp;nbsp;The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission a href=http://cotsignals.com/ target=_blankCommitment of Tradersnbsp;/areports.nbsp; Our thought is that, in a value driven commodity futures market no one knows honest value like the people who produce it or, have tonbsp;use it.nbsp; In fact, it is preciselynbsp;their sense of value that provides the commodity markets rhythmic meanderings that swing traders like so much.nbsp; Lets face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices.nbsp; Therefore, tradernbsp;should be able to incorporate this valuable information into their a href=http://commodityandderivativeadv.com/services/systemsfuture market education./a/p
pThe daily commentaries provide a reviewnbsp;of any reports released that day, a recap of each commoditys traded price activity, an analysis of the factors that influenced price activity, and a look ahead at the schedule for the next day.nbsp;nbsp;Market commentaries for wheat, soybeans, corn,nbsp;silver and gold are provided by CME Group.nbsp;nbsp; The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the buy or sale of any futures or options contracts./p
pThis blog is circulatednbsp;by Andy Waldock.nbsp;nbsp;Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity amp; Derivative Advisors, located in Sandusky, Ohio.nbsp; As a result, Andy Waldock may have positions for himself, his clients, or his relatives in any commodity future market reviewed.nbsp;The blog is meant to develop a discussionnbsp;and educatenbsp;those with an interest in the commodity future markets. The commodity markets use a high degree of leverage and commodity trading nbsp;may not be suitable for all investors.nbsp; Investing in the commodity futures could result in considerable risk.nbsp; If you are interested in reading other circulated articles, commentingnbsp; on his writingsnbsp;or subscribing to Andys blog,nbsp;please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777./p
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