Grain Concerns

Outside macro markets have ruled today's market movement with corn, soybeans and wheat falling sharply on the opening as the U.S. and world economic outlook worsened. Selling has been widespread as the bulls are just simply “giving up."


Crude oil futures have fallen to $40.85/barrel with a host of other markets sharply lower on liquidation and new selling. The fear of failing future demand is widespread - and that government stimulus has not done enough to alter prevailing recessionary economic trends. That has been the theme today.

The U.S. Census Dept reported that 533,000 lost their jobs during November, a much larger than expected decline. Worse yet, October and September job losses were revised upwards. The November job losses were the largest since 1974 ad are going to place acute pressure on the new Obama Administration to produce an economic stimulus package of at least 4% of U.S. GDP – say some $600 billion.

Moreover, for farm clients where cash basis levels are $1.20 or more under for corn in the far Western Plains or the upper Midwest, LDP offers may again be available as county posted prices near the loan rate.