Indiana Grain Company, LLC

Posted: 11/27/11

By: tomgrisafi

Last week was ugly for stocks. Last week was ugly for commodities. Last week was ugly for everything... especially turkeys.

But a glimmer of hope returned to markets overnight as soybeans recovered from a 13-month low, while corn and wheat gained more than 1 percent on hopes that Europe's lingering predicament will somehow improve this week.

Traders will also keep a watchful eye on fundamentals this week. For example, the decline in grain prices has not led to a strong increase in export demand. U.S. corn export sales at 350,000 tonnes were below trade expectations for 400,000 to 600,000 tonnes.

What's more, traders are now anticipating China, the world's top soy importer, to show an interest in corn, whose prices have slipped below the psychologically important $6 mark.

China, the world's second-largest corn consumer, however, could put off purchases to rebuild its state reserves in the face of easing prices at home and a bumper domestic crop.

Only time will tell.

Source: Reuters

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