WHAT DOES ADM THINK ABOUT CHINESE DEMAND

Jan 29

WEEKLY GRAIN NEWSLETTER

This is Jeremey Frost with some not so fearless comments for www.dailymarketminute.com

Grain Price Action

A rather wild week for the grain markets the past few days. We started off lower leaving some gaps on the charts on Sunday the 22nd, but we followed that up with very strong reversals on the charts that left all of the grains positive for the week.

The price action has added to my bullish attitude and outlook for long term price action. As I mentioned in some of my audio comments in the past week or so we are very close to seeing some breakouts on the charts, we are just a few good days away from really opening up the technical view, which would cause money flow to enter into our markets.

We also have a chance that fundamentals will drive the price action as it feels like our trend on the demand side of things is improving. The export sales in the next month or two will really be very key.

If soybeans continue the pace they have had in exports we will see the USDA have to adjust our export sales higher despite the fact that they lowered them in our January report. Our balance sheet is tight enough that we really don’t have extra soybeans to export.

As for corn it appears our exports might be the only game in the world for a bit. So the next several weeks will be very important for our corn balance sheet. The present pace is well behind even the lowered USDA numbers. But part of that is because the USA has only so much shipping capacity and our export terminals won’t be shipping tons of corn when they are full of soybeans.

What All to Watch..

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