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Grain Market Commentary for Wednesday
Wednesday, January 13, 2010
by Joe Vaclavik of MF Global Inc.
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Highlights - H/K corn down 17 overnight after yesterday's limit-down performance; USDA pegging final national corn yield at 165.2bpa, almost 3bpa higher than the avg trade guess; USDA talking re-surveys in some states? Many still thinking both feed and export numbers too high
- Soybeans holding up much better than corn; USDA pegging final national bean yield at 44bpa, just slightly higher than the avg guess
- Harvest delays had virtually no affect on yesterday's report; Old crop/new crop corn spreads collapsing with March/Dec down 9+ overnight
- China credit tightening also a bearish issue as future demand remains in question
- Outside markets mixed this morning with the US$ down
- Trade should take another day or two to digest an increasingly bearish fundamental situation for the grain markets
Looking for trade recs? Email Joe Vaclavik at jvaclavik@mfglobal.com to get started on a free trial of his daily updates!
Recent articles from this author
- USDA Report Commentary for April 9th - Friday, April 09, 2010
- Grain Market Commentary for Wednesday - Wednesday, March 03, 2010
- Grain Market Commentary for Wednesday - Wednesday, January 27, 2010
- Grain Market Commentary for Wednesday - Wednesday, January 20, 2010
- Grain Market Commentary for Wednesday - Wednesday, January 13, 2010
About the author
Joe Vaclavik began his career in the brokerage industry working for a prominent ag-marketing firm. He worked primarily with grain and livestock producers in developing cash marketing plans and viable hedging strategies. Now at MF Global, Joe continues to work with a large number of grain and livestock producers across North America and also works with both private and institutional speculative traders. He prides himself on providing traders with his personal research and has worked hard to ensure the success of his clients. Joe authors his Grain Wire every morning which includes outlook and trade recommendations. He also issues a weekly Grain Marketing Update which advises producers on cash grain and hedge positions. Joe can be reached directly at (877) 310-5643 or at jvaclavik@mfglobal.com. Future trading involves risk of loss and may not be suitable for everyone.
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