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| Midday comments from CBOT
Wheat
"The market found increased selling pressure from weakness in the other grains, weakness in the stock market and fears of an overall commodity market washout led by world money managers exiting positions"
Corn
"Fears that fund traders will remain active sellers of commodities until the world financial markets settle down helped drive the market sharply lower early in the session. Funds hold a hefty net long position in corn and the knee-jerk reaction to step aside helped drive the market to an 8-session low early in the day. Weakness in energy markets and weakness in most other commodity markets added to the bearish tone."
Soybeans
"The sharp break in the stock market, metal markets and other commodity markets ahead of the opening sparked fears of a drop-off in commodity demand due to a slowing economy and more importantly fear that world money managers dump commodities and other risky investments and move to the sidelines."
I had a visit with a farm manager type Tuesday, and his take was that the commercial demand from Ethanol will drive $4 corn indefinately. My take is more along the lines that this whole shebang has been driven by funds, and if it were left up to the traditional commercials and speculators corn prices would be much closer to $2. I don't know who's right, but if the funds start exiting in massive numbers I suppose we'll find out.
Any comments? What all am I missing. (I'm sure it's a lot.)
Think I'm gonna go load and dump the last of my 06 beans here after lunch. It's a rather chilly 86 degrees here so maybe it won't be quite as bad in the bin as yesterday at 104!!!!! | |
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How vulnerable are we?
