Overnight market developments - its all about oil
Overnight markets have followed through from last night's steep losses and are down again this morning.
News that the CFTC is looking at ways "to ensure U.S. energy markets function properly and are free of manipulation and abuse" has given speculators in the oil market the jitters which has spilled over into grains. Firstly if crude is going down then grains will follow it, secondly if the CFTC are looking at regulation spec activity in crude then why not investigate/cap it in grains as well?
A firmer dollar has also dampened sentiment.
Beans are currently down 9-10c, adding to last night's 50c loss. Corn is around 5c lower and wheat down 1c. Crude is around $125, the thick end of $2 down, following yesterday's drop of nearly $4.50/barrel.
News that the CFTC is looking at ways "to ensure U.S. energy markets function properly and are free of manipulation and abuse" has given speculators in the oil market the jitters which has spilled over into grains. Firstly if crude is going down then grains will follow it, secondly if the CFTC are looking at regulation spec activity in crude then why not investigate/cap it in grains as well?
A firmer dollar has also dampened sentiment.
Beans are currently down 9-10c, adding to last night's 50c loss. Corn is around 5c lower and wheat down 1c. Crude is around $125, the thick end of $2 down, following yesterday's drop of nearly $4.50/barrel.