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Grain Market Commentary for Wednesday
Wednesday, January 27, 2010
by Joe Vaclavik of MF Global Inc.
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Highlights - Traders bought beans and sold corn/wheat yesterday in modest amounts; Corn, wheat and soy all remain bearish technically, although remain hugely oversold
- Equity markets along with crude oil have looked soft all week; Any further downturn in equities especially may be a caution flag for fund buyers looking to add to grain length over the next couple of weeks
- Weak January potentially a signal for a weak year in equities?
- Traders debate acreage possibilities for next year; Many now looking for a major 2-3 million acre increase in corn and a modest half to one million acre increase in beans
- Seasonally, its no surprise that we're seeing poor performance from the grains; Next major hopes of a grain rally may come with either poor spring planting conditions, a bullish re-survey of corn production or a surprise in the March planting intentions report
- Many analysts suggest limited downside in corn especially prior to acreage/planting
Looking for trade ideas? Email Joe at jvaclavik@mfglobal.com for this week's grain option trade!
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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