Sep 15, 2014
Home | Tools| Events| Blogs| Discussions Sign UpLogin

AgDay Blog


EHedger Report

RSS By: Dustin Johnson

Dustin works with a wide net of large producers throughout the Midwest. His analytical market approach and objective hedge strategy development is specific to the needs of every individual.

EHedger Afternoon Grain Commentary 8-15-2011

Aug 15, 2011

It’s Monday and the markets are starting off the week stronger.  December corn finished 5 ½ cents higher at $7.20, November soybeans 16 ½ cents higher at $13.51 ¼, and December wheat 9 ¼ cents higher at $7.41 ½.

Soybeans led the way higher this morning after Nopa Crush came in better than estimates at 122,952.  Soybeans have been lagging behind corn over the last couple of months on corn supply fears.  We can see this in the latest COT report with one of the largest ever drops in net long soybean positions by managed money (see chart below)!

Weather is going to be a determining factor throughout the rest of August.  If we don’t see adequate rainfall coverage we could see the beans/corn ratio come back some.  If weather remains favorable for soybeans we could see another price break.  The latest crop progress report shows no major changes in crop ratings for corn and soybeans.  Here is how they break down:

Corn                               August 14th                         5 year average

Doughing:                           52%                                        58%

Dented:                               17%                                        21%

Corn’s crop rating was left unchanged in the good-excellent category at 60%.

Soybeans                          August 14th                         5 year average

Blooming:                            94%                                        94%

Setting Pods:                        70%                                        78%

Soybean’s crop rating was left unchanged in the good-excellent category at 61%.

The crop conditions report was neutral-to-bearish and may be slightly lower on tonight’s grain open.  The market is still in an unknown zone after pricing in last week’s USDA report.  We managed to take out the contract highs today in corn, but to continue making a significant rally we will likely need to see further yield reductions.  We like staying in sustainable hedges and periodically checking AMMO to make sure you are well protected. 

Please call your broker if you have any questions.

Chart 8.15.2011

 

Best Regards,

EHedger

 

For a free trial of EHedger services including the morning automated phone call, daily afternoon market commentary, and/or a free consultation, please contact EHedger at 866-433-4371. You can also visit us at www.EHedger.com.

 

Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. The market information contained in this message has been obtained from sources believed to be reliable, but is not guaranteed as to its accuracy or completeness. Market information may not be consistent with current or future market positions of EHedger LLC, its affiliates, officers, directors, employees, or agents.

 

Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

MARKETS

CROPSLIVESTOCKFINANCEENERGYMETALS
Market Data provided by Barchart.com
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions