The Grains are all lower in digestive trade after yesterday’s large rally and in the face of the the higher dollar, today. With 92 percent of the Corn in according to the USDA, there remains about 1BB bushells, half of which should get harvested this week. We will have to see the final numbers and weather of not these harvest issues will have long term bullish effects on corn prices. Also we may have seen over this last week, a situation where the large index funds have already re-allocated their crude oil longs into the grains. Or they possibly have done part of their package, with the rest to come after the first of the year.
The only other issue impacting the grains is the buying stature of China as the crop in South America unfolds.
So far today, the high in SF has been up against the 1060 level with the high at 1059. With a low at 1051/2 we are looking at a quieter trade, as these grains watch the dollar firmness. March wheat is down 5 1/2 cents on its low at 538, after posting a high at 541.
Over in March corn, we are down 2 cents at 406 1/2 with a high at 408 1/2 and a low at 405, for a narrow trading range.
Most likely after yesterday’s large run up in the grains we will see a breather as the market digests and looks towards the first of the year.
In the Crude Oil, we are higher after 9 days of selling took us from 80 dollars to below 70. There is resistance at 71 and 71 if we get a short-covering rally.
In the Gold and Silver, the sell-off seems to have abated, and we are positioned for sideways to higher trade through the end of the year. Silver is currently up 125pips at 17465 and the gold is up 3.90 at 1127.70. Again, it looks like on the charts, we could bounce higher in digestive trade after the 9-day down move.
Good Trading
