Highlights
- New lows in corn/soy/wheat overnight on sharply higher US dollar and continued follow through from last week's USDA report; Most contracts trading lowest levels since October
- Most looking for USDA production re-survey in March report; Some believe production estimates could actually increase on a re-survey due to overly conservative farmer estimates? Trade clearly confused over possibilities
- Equities lower this morning after yesterday's election fueled rally; Republican Brown winning special Massachusetts Senate election in a major blow to democrat health care plans
- Outside markets negative for the grains this morning with the US$ sharply higher and crude/gold/equities lower
- Advise selling rallies in corn, soy and wheat until further notice; Shorts in corn may want to look at scaling down positions on any major break today as corn still has the best story fundamentally
- Email jvaclavik@mfglobal.com for today's trade recs
Weather
- South American weather continues to be favorable producers, however a warmer/dry spell should hit the region this week
- Much of the Midwest should see significant precip over the next 24 hrs; The 5 day total for precip will be well above average for the vast majority of the country; Temps should be near normal
Looking to trade the grain markets? Email Joe at jvaclavik@mfglobal.com for a Free Trade Rec!
