November 28, 2011
By: Craig Haugaard, Grain Origination Manager
CORN: 10 higher
The dollar is down sharply this morning and crude oil is up $2.95/barrel as I write this so we will in all likelihood have a higher opening and should post a positive close today as well. Not much new in terms of fundamental news but there is a general feeling that technically we are getting oversold and may need a good bounce. In looking at the following March futures chart you can see that we hit an area (thick red line) that has provided support in the past and appears to be doing so once again. Look for a higher market today.
SOYBEANS: 14 higher
The outside markets stuff mentioned under the corn comments are supportive to beans as well. In addition we have the specter of drought in central and southern Brazil which will have traders wanting to own the futures. As you can see on the following chart, the January futures filled the gap left back on October 8, 2010 and now it makes sense that we bounce a bit to the upside.
WHEAT: 9 higher
We have great world competition in the wheat export market with Ukraine and Russia still holding a fire sale and now I read that Egypt is looking at adding Poland and Hungary to the list of nations that they will import wheat from. Today none of that will matter as bullish outside markets should raise all ships.
The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.