Good morning.
Today will be important as the Fed decides what to do with QE and the taper.
Beans slightly lower this morning, corn down 1 and wheat down 2.
Overnight corn fell for the first time in 7 days on improving weather. The trading community is still very long the Mar 430 and 435 straddles and these slow grinds higher and slow grinds lower absolutely do not help. It hasn't helped that MacQuarie Bank has said it is 'highly likely' that we will have another record corn crop.
The only outlier now is that Chinese which is why it is important the we keep a keen eye on how well their economy is doing.
The Emerging Markets got a boost yesterday with Turkey raising their interest rate significantly to defend their currency. It is a short term solution and will not work. I lived through a similar situation trading short sterling in London in 1992 when the Brits raised rates to 10%, then 12% and ultimately 15% in ONE day to defend the pound against the Deutschmark. It failed as the citizens of the UK could not afford their homes with rates that high. They quickly reversed paths, cut rates dramatically and spurred on growth that continues today.
God is up $3.15 to $1260.03 and oil is slightly lower at $97.27 down .14 cents.
Stocks are lower as we go into the Fed meeting for a second day .Don't forget , non-farm payroll is around the corner next Friday.
