Market report for Wednesday March 27, 2013

Global markets are trading lower in the early session as the fallout from Cyprus dominates investor sentiment. There are rumours that Slovenia will be next in line for a bailout, where banks are struggling with $9 billion of bad loans according to Reuters.
 
Crops:
Crops are marginally higher this morning led by a report by Goldman Sachs stating that industry demand for corn represents the highest upside price risk. With the estimated profit on a gallon of ethanol being the highest since June 2012, according to Bloomberg Financial, U.S. plants previously shuttered are coming back online.
 
Livestock:
Quiet markets….speculators looking for results of tomorrow’s USDA release to provide direction in grains to determine potential profitability in livestock.
 
Bottom Line for Ontario Producers: Tomorrow’s report (released at noon) will likely generate a lot of volatility for 3 reasons – speculators are long corn, soybeans and live cattle futures, Thursday is the last day before a holiday, we are at both month end and quarter end, which is a time when money managers typically get their bonuses calculated.
 
Disclaimer: This commentary is provided for information only and is not intended as advice