Wheat Market Commentary Report for 7/27/2010

September Wheat finished up 5 1/2 at 595, 9 off the high and 12 1/2 up from the low. December Wheat closed 6 higher at 627. This was 13 up from the low and 8 off the high.

December wheat traded higher on the day today, although prices retreated from the high established in the first minutes of the day session. That high in turn fell short of the high for the move established last Thursday. Continued dry and hot weather in NW Europe and in Russia continues to buoy the wheat market, according to traders. December wheat posted a modest gain over corn today in light trade by spreaders. There was also fear this morning that declining production forecasts in Russia could bring government intervention into the grain export market in the form of restrictions on export licensing, although officials there have made it clear so far that they have no plans to restrict exports at this time. Past interventions have been made to cool food inflation. The government is currently forecasting inflation into the end of the year at 6%, while some private forecasts are higher.

December Oats settled 4 1/4 lower at 258. This was 1/2 up from the low and 7 3/4 off the high.

Soybean Complex Market Commentary for 7/27/2010

August Soybeans settled down 1/4  at 998, 7 off the high and 3 1/2 up from the low. November Soybeans ended down 1/2 at 965 1/2. This was 3 1/4 up from the low and 7 3/4 off the high.

August Soymeal closed 1.3 higher  at 294.5. This was 2.1 up from the low and 2.0 off the high.

August Soybean Oil finished 0.24 lower at 38.56, 0.06 up from the low and 0.36 off the high.

November soybeans finished marginally lower today after giving up gains established late in the overnight session and into the start of the day session. Nevertheless, the November contract managed to remain above yesterday’s low throughout the day. December meal posted a fractional gain on the day while December soy oil traded lower. Traders said that the weak tone came on lower crude oil and gold markets, a better than anticipated weather outlook in the Midwest this week and a marginally higher dollar. Cash markets were also on the soft side this morning.

Corn Market Analysis for 7/27/2010

September Corn finished down 1 1/4 at 362 3/4, 6 3/4 off the high and 3/4 up from the low. December Corn ended down 1 at 377. This was 1 up from the low and 6 off the high.

December corn finished marginally lower today after starting the day on a firm note. Nevertheless, the December contract did manage to hold above yesterday’s low throughout the day. Traders said that lower crude oil and gold markets and a modest rally in the dollar kept the pressure on today, along with a relatively favorable weather outlook for the week. Traders said that support came from a lack of sellers in futures and cash markets along with strength in wheat. Some weather forecasts are calling for less rain in the western Corn Belt over the next 5 to 7 days, which will be welcome in a region that has seen saturating rains over the past week, including flood-inducing rains in some areas last weekend. A toxic spill on the Mississippi, north of Memphis, has resulted in a closure of the river below the spill this morning. No word yet on when the river might reopen.

September Rice settled 0.16 lower at 10.01, 0.04 up from the low and equal to the high.

After reading ï»¿today’s recap,traders might want to take a peek at the commercial traders  momentum.  The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports.  Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it.  In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much.  Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices.  Therefore, trader should be able to incorporate this valuable information into their future market education.

The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a rundown of each commodity’s traded price activity, and a look ahead at the schedule for the next day.  Market commentaries for corn, wheat, soybeans, silver and gold are provided by CME Group.   The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

This blog is published by Andy Waldock.  Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, Andy Waldock may have positions for himself, his customers, or his family in any commodity future market reviewed. The blog is meant to develop a dialogue and educate those with an interest in the commodity future markets. The commodity markets may not be appropriate for all investors due to the high degree of leverage.  There is substantial risk in investing in commodity futures.  If you are interested in reading other published articles, commenting  on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.

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