Indiana Grain, Week in Review- 1/16/2010
The big story in commodities trading this week was Tuesday the 12th's crop report. Many were shocked and caught off guard when the USDA announced that crop production had increased to 300 thousand harvested acres.
The report set off one of the most volatile commodity trading days in a long time. The market turned bearish quickly, and some were even speculating that corn prices have reached their peek already for 2010.
Soybeans were nearing the low end of Tuesdays lower trade and holding well below the 100 and 200 day moving averages. Reports that Brazil's record crop could even be larger than expected, resulted in Soybeans being weak.
Wheat turned to the downside as well, and today actually fell below Wednesdays low of 5.19, and some traders feel that corn wont be too far behind.
Stocks took a substantial hit on Friday to end the week, as the DOW was down over 1%, and the S&P down 2.1%. These are the largest drops since late November.
This was brought on mostly by the banking sector. JP Morgan earnings report was released Friday morning and although they announced earnings last quarter of 3.3 billion dollars, the Powerhouse still continues to struggle with delinquent loans. This has sent a strong message to Wall St that traditional lending has not approved
Because, JP Morgan is known as a very well-managed company, the report today has set a tone for the banking sector earnings reports to come.