September 6, 2011
By: Craig Haugaard, Grain Origination Manager
CORN: 6 lower
In the past decade corn futures have been higher the day after Labor Day five times and lower five times, so in other words you could flip a coin to call the market direction this morning. We do have some pretty serious stuff going on in the world with the stock markets in the EU in melt down mode the USA dollar was higher and that could put pressure on our markets today. On the flip side the FC Stone numbers that we traded were very bullish and if the Informa report, which comes out sometime this morning, reflects the FC Stone type of numbers it should give this markets a bullish shot in the arm. Technically, two of my three indicators are bullish and the $7.80 area on the December futures is still a significant area of resistance.
SOYBEANS: 18 lower
With the FC Stone report giving us a projected carry-out of around 100 the trade will be very interested in what Informa has to say today. After the close we will get the weekly crop conditions report and that is expected to show a crop that is still in decline. Technically two of my three indictors are bullish with resistance in the November futures still at the $14.60 level.
WHEAT: 7 lower
The south west just can’t catch a break. With hurricanes smashing into our shorelines you would think that as big as Texas is that they could get in the way of one and send a good dousing of rain over their parched land but thus far all we see are more fires in that states and the ongoing drought will continue to keep wheat traders nervous. With HRW planting normally starting in September the longer this drought continues the greater the fear of lost acres will become. On the flip side, the September 12 USDA report is expected to show wheat production up from a world side perspective. Technically, the bulls are still in charge of this market.
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.