Wed, 25 Apr 2012 10:16:00 +0400
Futures news, corn. Taking into consideration corn market, two crops, old and new, are to be taken into consideration. This summer the market of old crop will be tense, especially concerning demand. There are no signs of slowdown in ethanol use and export, and ending stocks of corn are predicted to amount to about 700 mln.bushes. Spot market will rise rapidly, or at least remain within flat.
The market of new crop is derivative from weather conditions in the USA, which currently seem almost ideal. The question is how far American and world demand for old crop may influence the situation with new crop.
Spot prices remain high and keep growing at certain points.
In addition, due to the recent drop of futures price the margin of ethanol producers is close to break-even point, and there are talks about additional demand from China. The latter may, though, be doubted of. Additional Chinese import depends on available import quotes, which, according to certain data, have been used up. Private buyers will now be obliged to get permission for additional import from Chinese government or content with current limited quotes, each of which will be difficult. In June the winter wheat will be harvested in China, and, consequently, the niche of additional demand for American corn will be closed.
However, US home consumption and export into traditionally set countries (especially into Mexico, which has faced strong drought) will be supported by June futures at 6.00 US dollars per bushel. ARC predicted the top of the price range – 6.80 US dollars per bushel, to remain unchanged.
On the other hand, as of April 15, 17% of corn was reported to have been harvested, which will enable US Ministry of Agriculture to raise the yield by 3-4 bushels per acre in its May report. Even taking into consideration the expected rise of ending stocks during the season of 12/13, this will be a bearish factor. According to ARC, in order to realize such rise of ending stocks, December futures of corn are supposed to cost 4.50 US dollars per bushel.
At the beginning of summer these tendencies will have harsh competition.
Anyway, weather remains the key factor. Actual yield will finally be defined, and it will define the size of new ending stocks of corn and their prices. Any unfavourable weather conditions may rapidly change the bearish tendency at the market.
Traders should be ready to high volatility.
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At tis point, the biggest event in the global oil market is the latest OPEC summit. This is believed to be the major reason why crude oil prices keep on going down. Well, it is hard to disprove this supposition since the price started instantly falling down after the OPEC announced its decision to remain its oil production unchanged at 30 million barrels a day. This took place during the latest summit in Vienna on November, 27th.
The Secretary General of the OPEC says the OPEC’s decision to leave their oil production volume unchanged is not aimed at hurting any particular country, including Russia and Iran. This is what Market Leader reports.
It is not a secret that all those Western sanctions imposed on Russia by the USA and its Western allies used to be considered with a smile by most Russian politicians. Now we can see that the consequences are getting more and more serious and Russian politicians do not want to smile anymore. The projections become gloomier amid depreciating oil prices. Apparently, the Russian economy, which is heavily dependent on the export of oil and natural gas, couldn’t but feel the outcome, Masterforex-V Academy reports.
Several web sources report that Samsung, the world-famous tech giant from South Korea, is currently working on the next-generation processor for future Apple devices. In particular, it is said that the new processor is called A9 and it is going to be used in the next version of iPhone, which is probably going to be named iPhone 7, Market Leader reports.
As you probably know by now, the latest OPEC summit, which took place more than a week ago, ended up with the OPEC members abstaining from cutting down on their oil production, there leaving it at 30 million barrels a day in total. Apparently, this has been one of the key drivers pushing oil prices down to new multi-year lows.
The negative correlation between the supply and demand in the global oil market seems to keep on exerting downward pressure on oil prices around the globe. In particular, the Commodity Department of Masterforex-V Academy reports that the global oil supply is still growing as oil producers abstain from cutting down on oil production amid shrinking global oil demand backed by an economic slowdown. With that said, Market Leader reports that the average price of crude oil is down again. It is currently below $62/b. This is the lowest oil price seen since the latest global crisis.
On Monday, December 8th, the USA’s major stock indices went down in value after China published disappointing economic figures, Market Leader reports. The thing is that a couple of days ago, China revealed its trade balance figures for November. According to it, the country’s import went sharply down by 6,7% relative to October’s value. Apparently, the figures indicate weak consumer demand in China. At the same time, the export also declined by 4,7%. According to Masterforex-V Academy, the latest figures may give us to understand that the Chinese government is about to start more active stimulation of the national economy.
The international rating agency known as Fitch Ratings has just downgraded its forecast for the global GDP growth in 2014, 2015 and 2016 as opposed to the similar prediction made in September, Market Leader reports.
In particular, the financial experts working or Fitch Ratings assume that the global GDP is going to remain unchanged this year at the level of 2,5% while the growth rate in 2015 and 2016 are expected to reach 2,9% (+0,4%) and 3% (+0,5%) respectively.
The US stock index futures are still going up in value. The tendency has been underway since yesterday, when the Fed’s Janet Yellen gave everyone to understand that the probability of interest rate hikes within the cope of the next 2 FOMC meeting is close to zero.
Last week, several web sources reported that the Taiwanese manufacturer of computer electronics known as HTC is going to introduce a new mobile device named Hima. On top of that, the device is going to come have several implementations, Market Leader reports.