The recent markets have been a mess to say the least. heading into delivery the SN/SX spread is ripping wider in spite of negative export sales. This is strictly a result of the weak US dollar and strong crude markets. Flatprice contiues to rise but we are butting up against technical resistance with SX running out of gas as we appraoch 1086. In corn the upside fundamental catalyst everyone wanted on yesterday’s WASDE report did not materialize. The market looks to recover slightly today but the bears are now in control for the immediate future. In wheat you have to look at intermarket spreads with WZ-CZ very active with interest growing from the long side for wheat at current levels. Subscribers can see how I feel about this spread.

Overall the markets feel a bit overbought with techncials pointing to a continued downside move with beans the most vulnerable to pressure due to relative recent price moves.

Matthew Pierce

This entry was posted on Thursday, June 11th, 2009 at 9:33 am and is filed under Grains. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.