The Road Ahead:<\/p>\n
A decline in corn imports by China will remain this following week and drop the corn future price. China\u2019s huge corn production this year from August to this month, and beginning stocks are sufficient to satisfy domestic demand. The country will still import supplies to build its reserves, but import demands will be so much less than before. Furthermore, US predicted that the country will not have corn stock out even though there were severe drought losses and tight beginning stocks. The weather forecast predicted light rainfall for this weekend and heavy rain for late next week in the US plain. As this month is the time for seeding red winter wheat in US, rain in the forecast for October will boost prospects for seeding and harvesting from May to July next year. Based on this information, I predict that the wheat future price will decline. However, soybean future price is expected to go up this week. According to Statistics Canada, Canada\u2019s canola production is way lower than farmers expected. This decline in canola production provoked the fear that global oilseed stocks will be cut by the canola crop reduction. The demand of Canola has been shifted to other oilseed such as palm and soybean. Palm oil price eventually went up and the export tax on palm oil would make it even more expensive. That is why I predict that more oilseed demand will be shifted to soybean and its price will increase. Therefore, I would like to be in long position in soybean and short position in corn and wheat but I will not order more than one contract for each grains this week. USDA will update its forecast of the corn and soybean harvest on October 11. This update will change all corn, wheat and soybean future price.<\/p>\n
http:\/\/www.cmegroup.com\/education\/market-commentary\/ag\/2012\/10\/daily-corn_1191.html<\/a><\/p>\n http:\/\/www.cmegroup.com\/education\/market-commentary\/ag\/2012\/10\/daily-corn_1191.html<\/a><\/p>\n http:\/\/www.brecorder.com\/markets\/commodities\/america\/82906-us-will-have-enough-corn-despite-drought-usdas-vilsack-.html<\/a><\/p>\n http:\/\/www.spectrumcommodities.com\/education\/commodity\/statistics\/wheat.html<\/a><\/p>\n http:\/\/www.brecorder.com\/markets\/commodities\/asia\/83792-soy-rises-for-3rd-day-on-canola-damage-wheat-corn-firm-.html<\/a><\/p>\n http:\/\/www.brecorder.com\/markets\/commodities\/europe\/84021-palm-oil-follows-cbot-up-on-small-canola-crop-.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Road Ahead: A decline in corn imports by China will remain this following week and drop the corn future price. China\u2019s huge corn production this year from August to this month, and beginning stocks are sufficient to satisfy domestic … Continue reading