Market news ideas--February 7

[John_Walter]

While Marketeye is scouting South America for our benefit, I'll try to chip in a few markets news notes.

* Mid-morning, it was reported that corn futures were trading flat after reaching a fresh 30-month high. "Corn has set a pattern recently of setting new highs before consolidating and then making another move higher," analysts told Dow Jones. 

* Wheat was the big overnight story. Prices rose to fresh highs on news that top buyer Egypt had entered the market after nearly a month-long absence. According to Dow Jones, speculator's longs in wheat increased 18% to a record high. Here's more on that story:  Wheat futures starting near 30-month high on demand surge

* Check this out:  U.S. cotton acreage is predicted to rise 14% this year, according to a survey by the National Cotton Council of America.

*  For more on market-moving global weather, check out a new video report from Craig Solberg, Freese-Notis Weather.  Good stuff: (Click here.)

* CME cattle futures were expected to open mixed on trader concerns about consumer acceptance of higher beef prices with rising corn. Rising corn prices could support beef futures because it implies rising costs, analysts say.

*  Natural-gas futures dropped  to their lowest levels in almost six weeks as warmer weather is being seen for mid-February.

* 6-10 day outlook for Midewest corn, soybeans and wheat: temperatures near to above normal. Precipitation near to below normal 

[jec22]

Looking forward to his reports.   Interesting times in Ag.  Read that Cargill has some contracts out there that won't get filled due to yield shortages.  Hopefully all involved still honor their contracts in doing what needs to be done to make it right.  Because the American taxpayer is covering their backs anyway.  I think ethanol gets all the media attention.  But really, direct payments, crop insurance and the SURE program should be their target.  Those farmers with shortages, will still pocket big checks from subsidized crop insurance and then another big check from the SURE program.  Can't call farming capitalism, you grow a poor crop and you can pocket more money that the guy who grew a large crop(and marketed too soon).  And all with money taken from the taxpayer.  These programs are out of touch with the current prices, and no taxpayer needs to pay to put this kind of money in any businesses pocket.

Not to just single out farmers,  would be interesting to know if the story I read was correct, that families with food stamps have more money to spend on food that many of those without food stamps and paying their own bills.

[jcf97]

Hi Jon.  Did you mean COTTON is expected to be up 14% in acreage this year?  Not Wheat.   It will be an interesting battle for acres before the tractors roll.

[John_Walter]

Good catch on that one. Thanks!  And here's a link to the story: ICE Cotton Higher Amid 2011 Acreage Estimate- John