Wheat Market Recap
Dec Wheat finished + 5.75 at 598.25, 4.25 off the high and + 11.75
from the low.
Mar Wheat closed + 2.75 at 614.75. This was + 12 from the low and 2.25 off the high.
Dec Wheat closed 0.0575 higher on the session and up sharply from the early lows of 586.50.
While the recovery off of the lows was impressive, the market still closed off 0.1850 on the week.
A positive bias to outside markets supported the early bounce but selling emerged shortly after the higher opening to drive the market lower and to new lows for the move.
The USD is weak but weakness in energy and equity markets after a Strong start pressured the action.
Talk of improved moisture for the US Southern Plains next week which might improve crop conditions going into dormancy plus increased availability of southern hemisphere Wheat are seen as other negative forces.
Nearby futures for Kansas City Wheat pushed to the lowest level since July of Y 2010 before closing slightly higher on the session as well.
Egypt announced an optional origin tender after the close and traders may watch weekend results for some direction Sunday night.
Corn Market Recap
Dec Corn finished down 4.25 at 610.25, 7 off the high and + 8.75 from the low and off 0.2825 on the week
Mar Corn closed down 5.25 at 618. This was + 9 from the low and 8 off the high.
Hope for a strong recovery in the stock market and a weak USD helped to support the higher opening but a turn down in the energy markets and ideas of increased macro economic risk for the weekend in Europe plus the upcoming deadline for the US Super Committee actions helped to turn the market down to trade sharply lower into the mid-session.
This pushed the market down to the lowest level since October 11th and leaves the market down as much as 0.645 off of the November 9th high.
On the sharp break yesterday where traders indicated massive Long liquidation from fund traders, open interest was up 7,871 contracts to 1.328 million, the highest since June.
South Korea's largest feed-maker bought 55,000 tons of feed-Wheat and 125,000 tons of Corn in their overnight tender. Just 70,000 tons of the Corn order was US. A second week in a row of very poor export sales has added to the negative tone.
Traders appeared to have priced-in Bearish news ahead but there is also a concern that lower prices may also stimulate demand in the US.
January Rice finished down 0.035 at 14.68, equal to the high and + 0.21 from the low.
Soybean Complex Market Recap
Jan Soybean finished unchanged at 1168.25, 9.25 off the high and + 15.50 from the low.
Mar Soybean closed down .25 cents at 1178.25. This was + 15.50 from the low and 9.25 off the high.
Dec Soymeal closed up 3.9 at 298.4. This was + 7.5 from the low and 0.1 off the high.
Dec Soybean Oil finished down 0.52 at 50.88, 0.91 off the high and 0.55 up from the low.
Jan Soybean saw a strong recovery from the lows of +0.155 late in the day to close unchanged on the session and down just 0.0725 lower on the week.
The early break pushed the market to a 1-yr low as a positive tilt to outside markets faded in the early trade and market players appeared to be moving to the sidelines into what is expected to be a risky weekend of macro economic news.
January Soybean hit a mid-session low of 1152.75. The turn down in the energy markets and less support for the US stock market helped to pressure the market after a higher opening.
Private exporters confirmed a sale of 124,500 tons of US Soybeans to China.
Dec Soybean Oil was also sharply lower into the mid-session despite strong gains in the Palm Oil market overnight. Workers at the main port of Santos in Brazil plan a 24-hr strike on November 21st.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.