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Bullish USDA data released Tuesday

The USDA released bullish data for Tuesday’s CME Group grain markets. The U.S. farmers will grow less corn than expected, the government agency says.

In its November Crop Production Report, the USDA pegged the U.S. 2010-11 corn production at 12.540 billion bushels compared to its October estimate of 12.664 billion and the average trade estimate of 12.545 billion bushels.

Ron and Sue Mortensen: It's the Dollar

Today’s sharp move higher in commodity prices can be totally blamed on the dollar and the state of the US economy.  Although a sharply lower dollar can often provoke an upside spike in prices, why was today’s move so extreme?

 

The Fed’s announcement yesterday of a substantial QE program has renewed fears of inflation, even hyper-inflation.  The market has gone from a desire for a little inflation (so our economic situation does not turn out like Japan’s “lost decade”) to worries that the Fed has created too much inflationary pressure in the future.  

 

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2011 Corn contracts exceed $6

CHICAGO, Illinois (Agriculture.com)--The Federal Reserve's $600 billion stimulus plan is pressuring the U.S. Dollar and pushing the CME Group grain markets sharply higher Thursday. 

While the spot Dec. 2010 contract fell short of it, the 2011 corn futures contracts all traded over the $6.00 per bushel mark.

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VIDEO: Fed's QE2 plan seen pressuring Dollar

CHICAGO, Illinois (Agriculture.com)--As the Federal Reserve prepares to announce Wednesday its plan to print more money for the U.S. economy, the stimulus plan is seen pressuring the Dollar. 

Phil Flynn, PFGBest.com financial analyst, tells Agriculture.com that the Fed's quantitative easing plan, known as QE2, could keep the U.S. Dollar in a downward spiraling position, pushing up commodity prices. 

Flynn appeared as a guest this week on the Marketeye Report in Chicago. 

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EPA E15 decision gets mixed reviews

The Environmental Protection Agency announced Wednesday a waiver for U.S. gasoline to be blended with 15% ethanol vs. the current 10% in motor vehicles 2007 and newer.

Meanwhile, a decision to increase the ethanol blend rate for vehicles 2001-2006 has been deferred, Gina McCarthy, EPA Assistant Administrator told reporters during a press conference.

“More testing is needed. A research of those years will be completed this month. The waiver for smaller vehicles such as motorcycles has been denied,” McCarthy says.

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Ron and Sue Mortensen: The carryout is the carryout

OK, OK, we’re stuck with it.  The USDA released an ending stocks number for corn Thursday that was shockingly large—1.708 billion bushels.  It will stare us in the face every time we look at historical supply/demand data.

The pre-report estimates had no number in them that was anywhere that big.  While many expressed the opinion that the number could be large, no one thought it would be 1.7 billion bushels.  If anyone imagined that, they kept it to themselves.  

 

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USDA grain stocks bearish

CHICAGO, Illinois (Agriculture.com)--The USDA released mostly bearish grain stocks data Thursday. As a result, the corn market could take the biggest hit.

For corn, the USDA estimates stocks at 1.708 billion bushels vs. the trade expectation of 1.407 billion bushels.

For soybeans, the USDA placed stocks at 151 million bushels equal to the average trade estimate of 151 million bushels.

For wheat, USDA pegged the stocks at 2.224 billion bushels vs. the average trade estimate of 2.44 billion bushels.

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USDA releases mostly bearish stocks data

CHICAGO, Illinois (Agriculture.com)--The USDA released mostly bearish grain stocks data Thursday. As a result, the corn market could take the biggest hit. 

Early calls for corn are 6-8 cents lower, soybeans firm, and wheat to follow corn.

For corn, the USDA estimates stocks at 1.708 billion bushels vs. the trade expectation of 1.407 billion bushels.

For soybeans, the USDA placed stocks at 151 million bushels equal to the average trade estimate of 151 million bushels.

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