07-23-2012 08:13 AM - last edited on 07-23-2012 08:46 AM by John_Walter
Drought maps going back 100 years show that this is the real deal. Nearly 1,300 counties across 29 states have been declared federal disaster areas.
With that said, the world is puking this morning and the selling pressure across the board is keeping the grain market in the red. Spain is imploding..trying to do its best impression of Greece.
Spain's borrowing will go to 9% which will be unsustainable. The Euro will make a move to 1.12 and our 10yr will try to go to 1.30 then lower.
Things are pretty tough out there.
07-23-2012 09:40 AM
It is amazing that Europe keeps putting off the inevitable and pushing things to the brink...... My guess.... It helps the politicians swallow the bitter pills that each country has to go through...... This has IMO been all fig out and just going through the process....... p-oed
07-23-2012 12:31 PM
Goldman Sucks may very well be right, but it's getting a little concerning seeing two major key reversals in two weeks time in beans and corn. I guess it's a little early to call today one without knowing the close, but concerning just the same. Roy Smith said a few weeks back that the traders always seem to know about a weather change a couple of days before the weathermen. Maybe, we're about to witness a trend change in the weather? It's most likely a little late for the corn, but it could be huge in beans. Time will tell.
07-23-2012 01:55 PM - edited 07-23-2012 01:58 PM
I'm waiting for the crop condition report... can't be showing noticable improvement. The broader markets are tanking over the Europe thing again. Crude is down almost $4. Beans are down too much based on the lack of moisture, but corn with a 15 to 20 correction is still in the stratosphere.
I'll be ready for a turnaround Tuesday though.
It is over 100 here for the second day in a row and two more coming. Irreversable damage in most fields in the drought areas.
07-23-2012 02:04 PM