Global markets are trading lower in the early session as the fallout from Cyprus dominates investor sentiment. There are rumours that Slovenia will be next in line for a bailout, where banks are struggling with $9 billion of bad loans according to Reuters.
Crops:
Crops are marginally higher this morning led by a report by Goldman Sachs stating that industry demand for corn represents the highest upside price risk. With the estimated profit on a gallon of ethanol being the highest since June 2012, according to Bloomberg Financial, U.S. plants previously shuttered are coming back online.
Livestock:
Quiet markets….speculators looking for results of tomorrow’s USDA release to provide direction in grains to determine potential profitability in livestock.
Bottom Line for Ontario Producers: Tomorrow’s report (released at noon) will likely generate a lot of volatility for 3 reasons – speculators are long corn, soybeans and live cattle futures, Thursday is the last day before a holiday, we are at both month end and quarter end, which is a time when money managers typically get their bonuses calculated.
Disclaimer: This commentary is provided for information only and is not intended as advice
Market report for Wednesday March 27, 2013
Posted on:
March 27, 2013