11-30-2011 07:40 AM - edited 11-30-2011 11:35 AM
Well, who's dizzy yet? That sure didn't take long. Now, nearby corn's back in the red after some late-morning profit-taking following an earlier rally. Traders knocked the grains off morning highs in taking profits, sending corn into the red amid a stumble in the crude oil market and lagging export demand. At mid-day, December corn is 1/4 cent lower at $5.97 3/4, January soybeans are 8 cents higher at $11.33 and wheat is 1 1/4 cents higher at $5.95 3/4, according to Barchart.com.
So now, are we looking at the end of the market's reaction to the rate cut, or is it too early to tell? Or, is it because of a lack of much of any bullish fundamental news?
Man, who was the dope in here who originally said the grains were going to be mixed today?! The folks at the Federal Reserve must have seen that and wanted to prove me wrong, so they lowered the bank swap interest rate and off the markets went! The DOW's almost 430 points higher right now, and the grains are following suit!
In early trading, December corn is trading 10 cents higher at $6.08 per bushel, while January soybeans are 15 cents higher and December wheat is 13 cents higher.
The U.S. Dollar index is falling sharply and crude oil futures have surged over 1% so far this morning. So much for a mixed start! Looks like a bullish day all-around.
Remember those $6.02 and $11.30 price points for nearby corn and beans -- if we close above them today, it sounds like that could mean we've bottomed, at least some traders say. We'll see!
Why doesn't all this stuff happen when the A-Team's in who knows what he's doing?! You all have to help me "remind" Mike that the markets went up while he was gone. I'll happily take the credit! Ha!
More in a bit...
We've got a mixed open coming this morning, it looks like.
Early calls for the commodities are corn 1-3 lower, soybeans 2-5 higher and wheat 2-4 higher, according to private sources.
At just after 7:00 AM CST in the overnight trade, December corn was 1 cent lower at $5.97/bushel, while January soybeans were 3 1/2 higher at $11.28 1/2 and December wheat was 1 1/4 cent higher at $5.95 3/4, according to Barchart.com.
Nearby corn is slightly lower in overnight trading, so has the rally been upended after 2 days?
11-30-2011 08:11 AM
Barchart had corn dipped in the red at 7:00 this morning. Looks like you're right, though -- maybe just a momentary dip or a glitch in the system?! Hey, remember, I'm just the B-Team here while the real Marketeye is out!
So, do you think things are going to stay on the positive side today? Does this rally have legs?
11-30-2011 08:46 AM
Lets see...... Dollar getting cheaper...... Demand good...... Crop most likely getting smaller...... World just might not collapse into the big black hole......OH and one more thing....... the funds are major shorts in wheat........net short in beans..... and only mildly long in corn......It will be interesting if these guys want back in the commodity markets....... ..p-oed
11-30-2011 08:56 AM
I don't know if this is a rally or just some gains to take us out of the oversold position the market was in. Thanks B team for keeping things going. Where is A-team Mike anyway? Vacation again?
11-30-2011 09:05 AM
Oh, we've been working Mike like a rented mule lately, and since I'm going to be gone here in the next couple of weeks at some point for a few days (my wife is pregnant & due in a couple weeks), he thought he better spend some time with his wife before we hitch up the plow to his back again!
Just saw some pretty interesting news. A trader tells me that the Federal Reserve Board and European Central Bank have cut interest rates by up to 1% for overnight swaps, or bank-to-bank short-term loans. So, cheaper money for the consumer.
So, what's it mean so far? The DOW is up over 400 points right now and this will give the grains a boost today, it sounds like. This probably explains the quick turnaround in corn earlier. Or, maybe I'm just trying to justify my screw-up earlier?!
Anyway, sounds like positive news for the grains. Of course, this is temporary and a "quick fix," but it could give the macroeconomy a much-needed jolt.
11-30-2011 09:08 AM
Oh yeah, and one other thing -- it looks like $6.02 for Dec corn and $11.30 for Jan beans are the prices to beat today. If we can close above those prices, one trader tells me it's a sign we're in for a little longer uptrend. Think that's right?