Market Recap 08.12.09
Rule number 8 of trading is "think like a fundamentalist, trade like a technician" - fundamentally, the market is heavy, US wheat has nowhere to go and it can't seem to find any friends; as the markets closed down for a 5th consecutive day, several technical levels across the markets were breached downward. CBOT wheat closed down 10. Expect to see more fund selling (or profit taking) as traders try to bank some money ahead of the end of year... I mean, as the stronger USD makes US wheat less competitive on the world market, well, that is the story from those who are desperate to find a fundamental rationale for events in Chicago. Aussie grain remains expensive into most world markets, a combination of cheaper alternative origins, strong bulk freight rates and low availability of bulk vessels. Given this information, don't expect Aussie to start working until something very dramatic changes somewhere in the world. Time to put on Die Hard and just wait...
Date of Publication: 8 Dec 09 9:00am ACST
Source: ABB Grain
