Find It Here
Twitter update
Subscribe

Subscribe to Post Updates from Arkansas Row Crops


 

RSS AgNews
Quick Links
Agricultural Programs
22
Sep
2011
Harvest: Monitor Fuel Prices
Author: Scott Stiles, Instructor-Economics

9/22

“Significant downside risk” summarized the Fed’s comments on the outlook for the U.S. economy.

At any rate, there is good and bad news associated with the stock market sell off today.  The bad news is the fact that grains and cotton elected to follow the stock market lower.  All grains posted double-digit losses today.  December cotton was 354 points lower to close at 99.29.  Crop futures will find support soon as this sell-off will be viewed as a buying opportunity for both commercial interests and foreign buyers.  The upcoming October 12 USDA Supply/Demand report will remind traders that U.S. inventories are tight for most crops.

On a positive note, energies were sharply lower.  Nearby crude oil traded as low as $79.66 today; at last check crude was trading near $80.  October Heating Oil  lost over 8.5 cents today.

At a time of year when farm fuel consumption is high, this is a welcome opportunity.  Continue to watch the nearby crude oil charts for signs of a bottom. Key chart support is $79.76 and the November crude contract was able hold above that level today.  The next layer of chart support for October Heating Oil is $2.8405.  The contract closed at $2.8485 today.


Save pagePDF pageEmail pagePrint page
«
»