Markets rebound from Fed “surprise” taper decision

Grains and Oilseeds:

December corn (CBOT:CZ13) closed at $4.51 ¼ per bushel, down 8 1/4c tied to seasonal pressure from the beginning of the U.S. harvest. We prefer the sidelines. December wheat (CBOT:WZ13) closed at $6.46 per bushel, down 11c tied to favorable planting weather in the U.S. plains. We prefer the sidelines here as well. November soybeans (CBOT:SX13) closed at $13.16 per bushel, down 23 1/2c and as with corn selling tied to seasonal pressure at the start of the U.S. harvest. Soybeans sold off on speculation of increased U.S. yield potential. We view these markets as a trading affair and based on harvest or planting progress. We are on the sidelines.

Meats:

No comment this week. October cattle (CME:LCV13) closed at $1.2640 per pound, up 47.5 points while October hogs closed at 90c per pound, down 1.15c.

Coffee, Cocoa and Sugar:

December coffee (NYBOT:KCZ13) closed at $1.1475, down another 1.05c and its lowest price in over four years. U.S. inventory increases to levels of 2009, large inventories and expected large global crops continue to weigh on prices. Beneficial rains in Brazil, the world’s largest coffee producer are benefiting production. We are on the sidelines. December cocoa (NYBOT:CCZ13) closed at $2,608 per tonne, down $22 on profit taking after recent price gains. Potential shortages of cocoa by years end holiday demand prompted recent buying. We prefer the sidelines. October sugar (NYBOT:SBV13) closed at 17.17c per pound and remains on our no interest list.

Cotton:

October cotton (NYBOT:CCV13) closed at 83.24c per pound, down 2.10c tied to demand concerns and increased global supplies. Weather in India is beneficial. We prefer the sidelines.

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About the Author
John Caiazzo

John has over 40 years experience at major U.S. Brokerage firms as Manager and Director of various International Divisions and is the founder of his own trading and brokerage firms. Over the years John has gained a wealth of knowledge and experience in all aspects of investments and trading. He was also a floor trader at the Commodity Exchange in New York. He formed Acuvest in 1999 and can be reached at futures@acuvest.com.

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