Another issue for grains is the U.S. dollar. The dollar was getting hit this week as European debt concerns took a backseat to concerns about a U.S. debt default, with an Aug.t 2 deadline looming to raise the U.S. debt ceiling. The U.S. will not default. Nonetheless, the dollar got hit and that certainly had an effect on grains. With corn failing to make much of a rally this last week with the weather concerns and declines in the dollar, what will prices look like with a materially better fundamental picture and the bounce the dollar? We wouldn’t want to be long corn this week, for the news ought to be bearish on many fronts.
We look for corn to open 7 to 9 cents lower and soybeans to open 10 to 12 lower.
Daily CME spot market prices:
Block cheese: $2.155 (up 1 cent)
Barrel cheese: $2.125 (up 0.75 cent)
Butter: $2.04 (up 0.5 cent)
Grade A NFDM: $1.525 (unchanged)
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