01-18-2012 01:57 PM
Are there any updates to the crops in South America this week? In the last couple of weeks, the reports came fast and furious. However not much news this week. Do they have a weekly crop rating system there? I read elsewhere that crop analysts are lowering their numbers, but have not been able to find out the numbers yet. Is no news good or bad for our markets? Thoughts?
01-18-2012 03:14 PM
A new story on the wire (full story) says:
"Rainfall in recent days over southern Brazil has quenched much of the drought-stricken grains belt, fueling hopes that the 2011-12 soybean and corn crops may prove better than the latest, most pessimistic, forecasts."
Believing that S.A. weather has been the one bullish factor in the markets, analyst Ray Grabanski (full story) writes:
"The bullish atmosphere we had going over the past 6 weeks may be ending. That puts the market susceptible to further losses in the next few weeks. Fortunately, we still have prices for Corn at near $6 for nearby months, and $5.50 for Dec 2012-Dec 2015 yet."
01-18-2012 03:28 PM
This rain IMO has been in the cards and traded for quite a while..... Old news..... I would not short this market based on rain today....... Keep a look out at the export market..... US grain is fairly priced against world values...... Can we afford to sell a lot more stuff than what USDA has on the books?........ p-oed
01-18-2012 03:35 PM - edited 01-18-2012 03:37 PM
So the crop is not going to die?........
I don't think that we ever though that it was never going to rain...........
I still think that rain has been traded for a while..........futures markets have the attention span of a nat.......