Grains Crash

Posted by Jeff Carter
on August 13th, 2012

Man, what a crash in grains. Since the crop report, they have looked like they were in a bear market. Today, it forced an unwinding in the meat trade. Near term months exploded, and deferred went negative as spreaders unwound positions that were going against them.

Peter L Brandt has been calling for a grain crash. We certainly got one.

CORN data by YCharts

I just drove from Chicago to Mississippi and back. I was on the Interstate, but was also on some backroads. South of Kankakee-Champaign Illinois, the crop is dead. Entire fields are brown. Bean fields have brown tops on plants. Through Arkansas, farmers were cutting their fields down. Even the deciduous trees already had brown leaves.

Another technician I know posts over at Powerpoints. He thinks the corn crop is so bad we might see $9. I wonder where the private estimates of the crop will come in? If they are below 122, we might see more than $9 corn. ($ZC_F, $CORN). If we do, we might see .72 hogs. ($HE_F)

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