Market Recap 15.12.09
Markets managed to have a positive day all round, with all three wheat exchanges posting gains, as well as corn (where the US harvest is now 92% done) and beans posting another 20c gain. The market is clearly in wind down mode as the fund managers start to nurse their results to protect their bonuses; the fear of not messing up a year's work is clearly upon them. Egypt has said that it will keep its one port tender terms despite French pleas; clearly the Egyptians are confident that they will get enough from other sources to make it worthwhile. Corn will remain in the driver's seat and wheat will be pushed/dragged along for the ride. Watch for more sideways movement, the question for the new year will be: just how much of the antcipated bigger corn yields and fund rebalancing will already have been built into the market? Given what we saw with the heralded Deutsche Bank activity in October, a big wedge will already be accounted for... maybe the bull market is a bit further away than we thought.
Date of Publication: 15 Dec 09 9:29am ACST
Source: ABB Grain
