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Contributor

Opening Comments OptionEye...Dec 14

Good morning!

 

Prices overnight have not done much with a mixed board heading into the opening.

 

Crude is unchanged

The dollar is weaker

Equities are unchanged

FOMC meeting today

Corn SHARPLY unchanged

Beans 3 better and wheat is 4 lower

 

Now that we have that out of the way, you can probably surmise that the holiday markets are upon us. A lot of the hedge fund, trend following funds have shut down their risk appetites for the year with only 2 weeks left before we get to start all over again.

 

Next year should be something to talk about as I see both a demand market and supply market to keep us busy. China, global weather and the sovereign debt issues will be the big drivers. I look forward to having a lot to talk about.

 

In the mean time shoot me any questions as Marketeye is out for a few days.

 

Scott

 

 

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Senior Contributor

Re: Opening Comments OptionEye...Dec 14

Scott is right, Marketeye is going to have a spotty schedule this week and next. I'll be in and out this week. Here today, spotty tomorrow, and gone Friday. Also, next week, I'll be absent the first part of the week. Thanks Scott, your input is invaluable.

 

Now that we've beaten the Chinese in a tire anti-dumping case, what will they dump on us as a payback? I do see they plan to appeal the WTO ruling and that they are not a bit happy.

 

Mike

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Veteran Reader

Re: Opening Comments OptionEye...Dec 14

Hi Guys

 

Just wondering what you think has the best upside potential into the year end - Corn, Soya, or Wheat. Do any of these markets close down before others or do you think they all wind down into start of 2011.

 

Thanks for all the good work.

 

Arb

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Contributor

Re: Opening Comments OptionEye...Dec 14

Typically they will all get quiet at the same time and are already starting to do so. As far as one getting quieter than the other, it will take market specific news to keep on commodity hotter than the others. If I new what that might be I would not be be behind this computer screen typing. Or, if I was, it would be on an island somewhere.

 

Upside potential is probably going to be limited to what loses less ground going into the end of the year. We may have some hopeful bulls but with the last ending stocks report we are going to need to feed the bulls everyday. That will weigh on the market. So,  in pure price terms, I think corn loses less ground going into the year end.

 

Scott

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Senior Contributor

Re: Opening Comments OptionEye...Dec 14

Feed the bull...... Hummmmmm......

Let me see......... we have dry weather in Argi....... Could rain in a few days...... Or not!.......

China lurking around the corner waiting to ponce on whatever they thing might be a bargain.......

Them dam....:~).... livestock guys looking out at those $.89 hogs next summer and the cattle guys looking at $1.05 cattle....... Does not look like they are going away any time soon.......

Ethanol running at record run rate  with good margins to boot...... 

 

Nope....... no bullish news that I can find....:~)......p-oed

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Senior Contributor

Re: Opening Comments OptionEye...Dec 14

is that live weight  89 cents per pound hogs? Looks like they can feed $6 corn and still make money if that is the case since 45 cent hogs fed $3 corn worked. Heck, probably works better since all the other costs should not have doubled. Maybe I should go forward with the hog barns.

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Senior Contributor

Re: Opening Comments OptionEye...Dec 14

That is for the lean cme contracts not live weight...... p-oed

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Frequent Contributor

Re: Opening Comments OptionEye...Dec 14

65 cent liveweight hogs can buy alot of expensive corn and beans.

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