Monday, July 28, 2014

Grains: ANZ; ABN Amro See an End to the Selling

As foretold by the (slightly snarky) prophecy in Friday's "U.S. Corn Farmers Face a Cash Crunch":
Probably time for a little bounce when the Journal starts paying attention.
Corn in storage-Sept. contract-$3.59'6 down 1'6, new crop-December-$3.68'4 down 1'0....
Currently  367'0 up 4'0 for the Septembers, 375'6 up 4'0 for December.

From Agrimoney 18:39 UK, 25th Jul 2014:
Worst over for grains rout. Sugar prices to rise
ABN Amro forecast that the worst is over for the tumble in grain prices, and forecast a rise in sugar futures ahead despite the potential for a setback when fresh Brazil estimates are unveiled later this month.

The bank, in a quarterly update, forecast that Chicago corn and wheat futures will post their lowest average prices in 2014, at $4.00 a bushel and $5.50 a bushel respectively, weighed by strong world production prospects.

However, that implies only small limited declines in wheat futures to $5.25 a bushel as of the end of October, some 6% below the price of December futures on Friday.

For corn, the forecast price of $3.75 a bushel as of three months' time is a little above where corn futures were trading at on Friday....MORE
17:23 UK, 28th Jul 2014,
Corn and wheat prices offer 'sound value' - ANZ

See also:
Iowa State's Worst Case Corn Prices: $2.89 By 2017