While the surging value of the US Dollar overnight has brought lower soybean and other grain prices, the fundamentals remain strong. This is a testament to the effect of the value of the Dollar.Wet weather continues to create planting delays for corn across much of the grain belt. Corn hit new all-time highs overnight, but then sold off as the Dollar appreciated, starting today's session below yesterday's settlement price. Soybeans, after appreciating last night, sold off to starting the day session flat this morning. Wheat, after showing strong buying in the past few days on volume indicators, is also showing renewed weakness today, although still off the most recent low prices. Weather appears to be more favorable for wheat harvest (thus suppressing prices), while still delaying planting for corn (supportive of prices).
My hunch is that this sell-off is likely to continue today, especially since many traders perceive risk in carrying positions over the weekend. However, I am prepared for anything. I really don't know what will happen. These are manic-depressive markets, and anything could happen over the weekend. Remember Douglas' first fundamental truth: Anything can happen!
