Continued wet weather will support grains as we go through this week. Technically we had a little pullback last week, but prices still look firm. Today at 10AM we will get export info, and after the close we will get progress report on the harvest. As long as the Bean crop is more than 50 percent harvested, we should be stable, if that number is lower, it should fuel another leg up. On a chart basis, Beans look to be the leader, with delays in harvest also translating to delays in planting next crop of wheat.
With the wet and cold weather, the trade also will be concerned with the quality of the crop being harvested. Too much moisture could lessen the quality and again, could raise prices for the best quality grain.
In the Stock indexes, we are up this morning.. Wednesday we are expecting first quarter GDP of around 3.2 percent adjusted for inflation. We will see if the cash for clunkers and other programs had impact on growth. If we don’t get that expected 3.2 percent, look for a fresh round of panic selling and a fresh round of panic headlines in the news.
Right now the 24 hour new cycle is stuck on the flu virus issues and the health care debate… A nice sexy economic disaster story would really fit the bill right now for those jackals, so beware…Remember, their job is to keep you watching so you’ll support their advertisers, nothing more….
That being said, we seem to have dodged an October Meltdown in the Indexes, with just a week left in the month…
Good Trading