06-13-2013 06:46 AM
Here we go again.
Japan will wag the dog again today.
Corn and wheat are unchanged to slightly lower. Beans are 5 to 9 lower.
Yesterday's report really had nothing in it for the bulls so exits ruled the day pushing everything lower. The market needed a surprise to the upside and did not get one. The weather is less daunting, the acres were not changed and we now need to focus on what mother nature will bring us in the coming weeks. The talk of the trade has been these 'old/new' spreads. Very hard to trade and definitely not for the faint of heart. July/Nov beans and July/Dec corn have been all over the place. Even the seasoned traders are reluctant to get involved.
And, just to add a little volatility to things, Japan's equities were down 6.4% overnight. That is just plain ugly. That brought Europe's bourses down as well and the U.S. is set to open lower as well. The emperor really has no clothes.
It seems as though traders and investors are testing the nerves of the central bankers around the world by selling bonds, effectively pushing up rates right when the bankers are trying to buy bonds and keep rates lower for growth. It will be interesting to see who blinks first. The 'taper talk' has not helped at all and has added fuel to the fire of the Asian sell off.
Our 10 year rate is at 2.19%...the gold market is hanging in at $1387 and the dollar continues to weaken against the Euro and the Yen.
It will be interesting to see how this ends and I think we are in for a fairly volatile summer.
06-13-2013 09:07 AM
Good Morning, I believe the June stock market fall is starting. I have some sell stops in. Also, rumors of banks in China hiding problems with loans made. How would this effect the grains? Yes, I am long corn with the crop in and nothing sold.
06-13-2013 09:27 AM
Nobody should be surprised that there wassn't any "surprise to the upside". As typical governtment(USDA) will do everything it can to downplay anything that suggests inflation. There will always be an effort to convince the general public that everything is all right. Nothing to see here, move on.