All my commodities are in the red this morning. Corn Wheat and Beans, Soymeal and Soy Oil all are under pressure.
The USDA numbers came out, slightly friendly for corn, and slightly negative for beans and wheat.
We have already seen Jan beans test the 953 level this morning, and as I said before, longer term, it looks like we need to go down and test the 933 to 935 level, and if that doesn’t catch a bid, then 900 and 890 are definite possibilities…Above the market there is a trendlne resistance at 1014-18, but with the crop 75 percent harvested, Carry over raised back from 235 to 270 M Bushels, unless we get a scare in South America this Winter, prices look under pressure.
In the corn, there are still issues, potentially with the quality of the crop as well a final yields, but with crop delay in harvest, there won’t be a good supply number until the USDA in January.
Stocks are mixed, but holding up rather well…trade is predictably choppy as is the case every day…There was more negative US news for US home sellers as the average price dropped yet again for homes in major metropolitan areas.
Also food for the bears was a wire story out today where an economist was touting a potential Asia bubble, due to their low rates. He felt there would be an asset bubble of immense proportions unless rates are raised sooner rather than later.
The US dollar is still sitting at its 15 month low posted yesterday, with a few halting rallies today…The trend is still lower in the US dollar, and it may be the only saving grace for our grain prices, as a weaker dollar will have increased demand for our cheaper grain.
Good Trading