After a good rally throughout almost the entire trading session, grains sold off again in the closing hour of the trading day, leaving the session relatively even for the day. The Deustche Bank Optimum Yield Agriculture Excess Return Index, as shown above intra-day, ended modestly higher on the daily chart (not shown). Volume was very heavy -- about 1/3 greater than yesterday, and the largest volume in about three weeks! This high volume and higher close is probably a sign of greater relative balance between buyers and sellers in the grain markets. Wheat was higher throughout the entire day, until just the closing minutes of the session. This conflict between buyers and sellers appears to be a good recipe for more consolidation and range trading. However, the undercurrent of weather and the Dollar always play a potent role as well. The most important USDA crop report of the season will be released one week from today.Tuesday, August 5, 2008
Following Solid Rally, Grains Sell Off Again
After a good rally throughout almost the entire trading session, grains sold off again in the closing hour of the trading day, leaving the session relatively even for the day. The Deustche Bank Optimum Yield Agriculture Excess Return Index, as shown above intra-day, ended modestly higher on the daily chart (not shown). Volume was very heavy -- about 1/3 greater than yesterday, and the largest volume in about three weeks! This high volume and higher close is probably a sign of greater relative balance between buyers and sellers in the grain markets. Wheat was higher throughout the entire day, until just the closing minutes of the session. This conflict between buyers and sellers appears to be a good recipe for more consolidation and range trading. However, the undercurrent of weather and the Dollar always play a potent role as well. The most important USDA crop report of the season will be released one week from today.
