06-11-2013 07:23 AM
It's gonna be ugly today.
We are seeing very poor volumes in the ag sector. The fixed income markets and to some degree the equity markets have been able to attract a lot of capital that would have otherwise invested in commodities. We are witnessing record outflows. That being said, I think there still is a lot of opportunity in grains. This crop has only just got in the ground and if anyone remembers last year, we were way too comfortable at this stage of the game.
Corn is a little lower. Beans are unchanged in Nov to up 4 in the front. Wheat is off 2 to 3 across the board.
Equities are taking it on the chin. Both Asia and Europe are in the red. The bond market is really heating up. There are things moving all over the map. Now if we could just get the economy to do the same.
Big move in corn and beans yesterday on improving weather and reports of a record soybean crop. Always seems darkest before the dawn. The Goldman roll is taking place so the spreads at the end of the day have some crazy moves. Not for the faint of heart.
06-11-2013 08:36 AM
How much reality is behind the quote of a record soybean crop when its June 10 and only 71% of the crop has been planted. Most of the crop will be planted in June with a reduction of 1%/day in yield after May 25 the rest of the year better be super perfect to make up for a terrible start.