It's A Bear Bloodbath
The price boards are a sea of red today, with Nov London wheat threatening to close below GBP150/tonne and Paris within sight of ending the session starting with a one instead of a two for the first time the beginning of August.
The overnight eCBOT market isn't lending any support, with wheat well below seven dollars, 17 3/4c lower at USD6.67 a bushel. Corn has crashed back below five dollars, currently 12 1/2c down at USD4.87 1/2 a bushel, and even soybeans dragged into the abyss below eleven dollars at USD10.96/bushel.
It would seem that the weight of spec longs is finally beginning to tell. It is of course month end, quarter end and we have the USDA out tomorrow with export sales and their quarterly stocks report. The latter could throw up some bigger numbers than the market had been expecting for corn and beans given the advanced harvest pace.
The big question now is will this been seen as a buying opportunity, and will October herald a fresh wave of fund money flowing back into the market?
The one thing I think we can be sure of is that further volatility lies ahead.
The overnight eCBOT market isn't lending any support, with wheat well below seven dollars, 17 3/4c lower at USD6.67 a bushel. Corn has crashed back below five dollars, currently 12 1/2c down at USD4.87 1/2 a bushel, and even soybeans dragged into the abyss below eleven dollars at USD10.96/bushel.
It would seem that the weight of spec longs is finally beginning to tell. It is of course month end, quarter end and we have the USDA out tomorrow with export sales and their quarterly stocks report. The latter could throw up some bigger numbers than the market had been expecting for corn and beans given the advanced harvest pace.
The big question now is will this been seen as a buying opportunity, and will October herald a fresh wave of fund money flowing back into the market?
The one thing I think we can be sure of is that further volatility lies ahead.
