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Warming weather trend on tap for next week – April 27, 2012 - INTL FCStone Blog
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International Assets Holding Corporation > INTL FCStone Blog > Posts > Warming weather trend on tap for next week – April 27, 2012
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The risk of loss in trading commodities can be substantial and FCStone, LLC assumes no liability for the use of any information contained herein. Past performance is not necessarily indicative of future results. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Reproduction without authorization is forbidden. All rights reserved. |
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| Warming weather trend on tap for next week – April 27, 2012 | 4/27/2012 8:32 AM | | CORN: FIRM The May/July spread exploded to an 18-cent invert due to lack of deliverable supplies (convergence of futures to physical) and little commercial ownership. Instances of “price later” are being offered to producers with a substantial inverted cash market. Traders believe it does not matter with producers “just waiting”. Lower ethanol crush margins are preempting the trend of lower production, implying eventual lower corn usage; an example of pinching off demand. Soft wheat harvest (which appears to be near ideal) will begin historically early in a few weeks allowing for double-crop soybeans to get seeded. Wheat feeding is substantial, replacing corn; another example of “high prices curing high prices”. Scattered rains across the Plains are predicted with a cool weekend forecast for the Midwest. A warming trend is on tap for next week with the western Belt catching up on plantings. Expect a firm start this morning. Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund |
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