The overnight markets have continued where yesterday left off with gains being posted in nearly every market. The grain market seem to be gaining some interest again as the equity markets have lost nearly 4% in the past week, this lowers the overall bench market of returns for the year and gives some more runway to trade and place risk back on knowing that the equity benchmark is now up 11% rather than 15%.
The overnight market seems to continue to digest the ideas that the yields are still coming in above expectations and that the USDA figures will show significant increases. The beans have eased back by 10-13 cents most of the evening session, meal has lost $4, oil is down 25-30 points, and corn fell by another 5-7 while wheat is standing alone trading on the positive side gaining 2-4 cents.
The overnight session gives a bit for everyone as the market continues to digest the past USDA report. The corn market is the market back on the front page as supplies remain tight. The beans are also tight but not as tight as many had assumed and wheat is also shrinking on the supply side. The bottom line is that the USDA once again was able to absorb some early harvest into the old crop figures and as long as there is early harvest this pattern seems to work. The question is what do they do when there isn’t an early harvest? This is a debate for another time as it doesn’t matter today.
Welcome to the today’s Afternoon Brief- Four hours into the U.S. session equities continue fall on data showing contracting manufacturing activity in the Chicago area, Chicago’s PMI came in at 49.7.
Crop Corn Report Released June 18, 2012, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA).
Wednesday April 25 Commodities Review
Tuesday April 24 Commodities Review
Monday April 22 Commodities Review
Friday April 20 Review
Thursday April 19 Review
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