Today we saw the USDA stocks report offer slightly bearish momentum for beans with corn possibally supportive had we not rallied so significantly. Wheat production is slightly bearish and would drag the market lower had wheat not already collapsed.
Month end will bring more action to the table than the report with the trade looking at inflated corn prices as farmers cash in on a hefty basis rally due to small harvest delays.
The bean corn spread is a bit too tight for many and will be a focus moving forward. Couple this with wheat corn approaching $1.00 and we again have interest in flat price spreads.
Overall look for a slightly weaker market across the board with macros looking to pull the AG markets higher with both crude and the Euro higher to start.

This entry was posted on Wednesday, September 30th, 2009 at 9:05 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.