Early Call On CBOT
11/10/10 -- The overnights closed sharply higher on follow-through from Friday's limit-up gains. Beans ended up around 48c, with corn up 40c and wheat 6c higher.
Corn is in the driving seat, with soybeans barking out instructions from the sidelines. Wheat is simply getting dragged higher by corn, although US ending stocks were reduced by the USDA on Friday the stock/use ratio is still the second highest in the last ten years.
Whilst US corn stocks/usage is the lowest since 1996, world stocks/usage is within "normal" ranges for the past ten years.
These prices must surely start to ration demand, yet the USDA increased domestic corn for feed usage by 150 million bushels on Friday.
US soybean stocks to use is now at 8.0%, well above last year’s 4.5%, and the highest since 2006/07.
Crude oil is offering little support, down 47c to USD82.19/barrel.
It will be interesting to see if we are witnessing shorts exiting the market or further fund cash flowing into it in search of more "easy money".
Early calls for this afternoon's CBOT session: corn up 40-45c, beans up 50c, wheat up 8-10c.
Corn is in the driving seat, with soybeans barking out instructions from the sidelines. Wheat is simply getting dragged higher by corn, although US ending stocks were reduced by the USDA on Friday the stock/use ratio is still the second highest in the last ten years.
Whilst US corn stocks/usage is the lowest since 1996, world stocks/usage is within "normal" ranges for the past ten years.
These prices must surely start to ration demand, yet the USDA increased domestic corn for feed usage by 150 million bushels on Friday.
US soybean stocks to use is now at 8.0%, well above last year’s 4.5%, and the highest since 2006/07.
Crude oil is offering little support, down 47c to USD82.19/barrel.
It will be interesting to see if we are witnessing shorts exiting the market or further fund cash flowing into it in search of more "easy money".
Early calls for this afternoon's CBOT session: corn up 40-45c, beans up 50c, wheat up 8-10c.
