The recent rally for soft commodities appears to have stalled once again last week, as improving weather conditions across the US mid West allowed harvesting to get back on track with the forecast for a record crop now back in focus.
What an end to the month! If traders in soft commodities were expecting a quiet end to the first quarter of 2013, there was a real sting in the tail, with the latest USDA report released on the 28th March, sending corn futures tumbling, and spilling over into oats and the soybean market. And the catalyst for these dramatic falls?
The overnight markets once again give a little for everyone as decent swings were seen throughout the evening session. The beans have rallied nearly $1 since last Friday and they had the least impact from the USDA while corn has gained only 40 cents. So what should be done now?
The overnight markets have once again given a little for everyone as the markets have traded on both sides but seem to gaining some strength through the early AM hours so far.
The markets are trying to recover from the bad hang over of the first week of 2013 as grain markets are testing areas that have not been seen since before the start of the worst drought in 100 years.
Rice_GrainsThe overnight markets are rolling over as the morning is progressing as once again there is not much of any bullish influences in any market so far. The beans are down 2-4 cents, meal has lost $1, oil is down 5-10 points, corn is down 3-4 and wheat is down 5-6.
The overnight market have once again shown some signs of life in the soy-complex as this market seems to be the only market that has global interest. The beans as of 8CST are trading +6-9, meal gained $1.50-2, oil increased by 25-30 points, corn is virtually unchanged…again and wheat is up 2-3.
I am going to present the wire in a little different slant today, as I mentioned last week we are going to try some new approaches of doing things as we head into the New Year and since markets are as slow as they are I thought we would try a few new things.
The overnight trade is starting the month of December with renewed hopes that December of 2012 will give a Christmas present like the December of 2011. The beans are already +20, meal has gained $5, oil has posted gains of 70 points, corn is pushing 10 higher and wheat is also +10-12.
The overnight markets once again have lost the momentum as it seems the entire market place is watching the same movie. The beans are trading down 10-12, meal is down $3-4, oil has eased by 20 points, corn is down 2-3 and wheat is hovering around unchanged.
