(Agriculture.com) – With more dismal news out of Europe, account transfers from bankrupt MF Global, and a stronger dollar, the CME Group corn, soybean, and wheat markets could be fighting an uphill battle Monday.
The Early Calls for the commodities on Monday, November 7, 2011, are mostly weaker. Corn is seen opening 1-2 cents lower, soybeans 1-2 cents lower, and wheat up 1-2 cents.
In overnight electronic trading, the Dec. corn futures contract traded 1/2 of a cent lower at $6.55 1/4 per bushel. The Jan. soybean futures contract traded 1 cent lower at $12.20 per bushel. The Dec. wheat futures contract traded 3/4 of a cent higher at $6.37 1/2. For Dec. soymeal futures, the contract traded $1.40 per short ton lower at $314.00 and Dec. soyoil $0.05 lower at $51.82.
The outside markets are mostly unfavorable for Monday’s grain trade. The real factors driving the calls will be the weaker overnight markets.
With Greece’s Prime Minister stepping down over the weekend, combined with rumors that Italy’s Prime Minister could do the same, this week’s farm markets may have to digest more negative world debt crisis news.
Tom White, FutureRoad.net analyst and CME Group floor trader says that the market continues to struggle in back and forth activity.
“There is really no major change to what we have discussed over the last several weeks. The charts still reflect congestion in the price activity and in the fact that the Relative Strength Indicator (RSI) moves back and forth between 30 and 70 (range trade).”
A break out of this pattern is expected soon, he says. “As we have mentioned on several occasions, the “longer term” (weekly) charts still reflect a potential bias to the long side. However, while the intermediate markets are mixed and even showed some firming last week, we still have a minor bias to the short side on short term charts and indicators. Until then be prepared for two way congested trade,” White says.
Written by Mike McGinnis @ Agriculture.com
