Market Recap 14.12.09
Wheat managed to stammer its way higher again, well, by 1.5 usc/bu. Corn staged another double digit up day you would think it came from the blizzard in the US, quality problems and the expected increase in the ethanol mandate being nixed - not on your Nelly; banks love corn and money just came in and grabbed some of the yellow stuff. Is this a forerunner of the fund rebalancing or some opportunistic activity? Who knows. The technical traders were saying that corn bottomed out on Thursday night, so that would make sense. Still oodles of wheat around the world and Russia continues to sell to Egypt. You would think they will hit saturation point, eventually, but that hasn't been hit yet. The Aussie continues to perform strongly against the USD; we need this to fall out of bed to make a significant difference. One of the FX guys here reckons that it could happen in the medium term, but then again, his judgement is so impaired that he supports Hawthorn. When we look at the US grain market, it is saying that US grain is too expensive to sell and the funds are willing to pay to store it. With Aussie grain more expensive into most destinations, what is the Aussie price saying??
Date of Publication: 14 Dec 09 9:25am ACST
Source: ABB Grain
