Market Recap 09.12.09
Wheat posted a red number for the 6th consecutive session; we could point to fundamentals, but with the funds inactive, or at least not buying, the trend downward continues. This momentum was aided by a stronger USD and weaker crude. No surprises from the market, ABARE wheat estimates were around 22mmt, giving the bulls something more to play with. Corn managed to hold up given that they are still 12% unharvested and a blizzard is due to hit the Midwest... And we thought we had problems! Beans remain strong, canola is focussing on Europe and the US has lifted restrictions on some Canadian canola crushing plants. Watch for the line to continue to dip, but if the fund buying in Jan does not materialise to the level expected, it could turn into a great big fizzer, call it a premiership hangover (refer Hawthorn 2009). Aussie still overpriced in most grains to most destinations, that is, if the end users were buying. Aussie dollar floats lower again - can only help...
Date of Publication: 9 Dec 09 9:03am ACST
Source: ABB Grain
