Jul 14, 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.

EHegder Closing Grain Commentary 10/28/10

Oct 28, 2010

 

 

 

 

Get More From EHedger.

 

Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.html for a free two-week trial of our full member website that gives you access to all our hedge and marketing recommendations, educational tools, market snapshots and much more.

Also learn about our acclaimed AMMO Program that helps producers optimize their marketing strategies using the premier tools and insights in the industry.

 

Get Organized. Get Ahead. Get EHedger

 

Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. 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 E Hedger, its affiliates, officers, directors, employees, or agents. Recipients assume the risk of reliance on and indemnify and hold E Hedger harmless for any and all losses, costs, or tax consequences incurred as a result of their use of market information.

 

 

Thursday corn and soybeans were higher with wheat again leading the way sharply higher.  The US dollar was sharply lower throughout the day and it was surprising to see modest gains in corn and soybeans with the dollar down over 900 points.  At settlement December corn was 1 ¾ higher, November beans were 1 ¼ higher, and December wheat was 15 ½ higher.

 

Weekly exports were in line with estimates for corn and wheat, but were once again strong for soybeans due to strong Chinese demand.  Soybean exports were 2.025 million metric tons, 1.37 of which was contracted to China.  November beans reacted early to the news but were unable to hold the strength and finished only slightly higher.

 

There has been recent speculation circulating the market that China will start buying US corn.  Corn has already been bullish from weak production in the US so if we see a spike in corn demand from China it would be considered very bullish. Soybean demand has been strong but much of this demand has already been projected.

 

Wheat was the upside leader again today.  The funds have been net short Chicago wheat against net long corn and soybean positions.  They are likely exiting many of these positions after the latest crop conditions report showed winter wheat at only 47% good to excellent compared to 62% this time last year.  Over the past week wheat has been at its cheapest levels compared to corn and beans for a long time so it didn’t take much for those spreads to reverse.

 

Between now and the next WASDE report (November 9th) we like staying well protected in cash sales and have our upside potential in spring call spreads.  Please call your broker if you still need to get the spring call spreads on.

 

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