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Stock market affecting grains

Agriculture.com Staff 11/01/2007 @ 2:29pm

Exports and More This morning's export sales report had marketing year low figures for corn and wheat. The strong pace of export sales definitely took a break this week.

Some of the weakness can be attributed to higher corn prices and alternative wheat supplies (wheat harvest beginning in Argentina, lower than expected export tariffs in Russia). Of course, the heavily front loaded sales mean eventually nearby needs are covered.

As with many other days this fall, crude oil prices, the US dollar, gold prices and the general mood about inflation influence grain and soy prices more than old-time fundamentals. Today's stock market performance and drop in crude oil prices certainly set the markets in motion for a good decline.

Pre-report estimates for the November 9th crop report will be price influencers for tomorrow's trading. Apparently, one widely followed estimate will be out this afternoon and another will be out sometime tomorrow morning.

The national corn yield in the October USDA report has caused many to think the yield may go down again in the November report. Disappointing yields in parts of Iowa add to the concern. Even if yields are higher in this report, the thought is they won't be as high as some of the trade estimates in October, when 160 bushel yields or higher were thought to be possible.

The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial situation.

Exports and More This morning's export sales report had marketing year low figures for corn and wheat. The strong pace of export sales definitely took a break this week.

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