Market Recap 04.01.10
The markets saw out the old year with a bit of a pop at the end with wheat breaking late to close a couple of cents lower. Beans and corn closed up marginally as most seem to be looking to position themselves ahead of the much heralded fund rebalancing which should occur this month. A lot of attention will be put on the USDA report due out next week, how much corn will be left in the field and what will they do to yields. Egypt came in and bought 240K of Russian, despite specifically looking for a cargo of North American, at what point will Russia's pipeline be jammed? Obviously not just yet... Prices were at $191-$192 FOB, French was $10 higher on a FOB basis... Aussie won't get within a hound's growl of getting business done while these guys are still intent on shifting product. Market volume should come back this week, the question is - how much rebalancing will come, where and when - the funds are doing their best Dirty Harry impressions - "do you feel lucky, well do ya, punk?"
Date of Publication: 4 Jan 10 9:01am ACST
Source: ABB Grain
