EHedger Afternoon Grain Commentary 11-8-2011
Nov 08, 2011
Grains finished strong with wheat leading the way. December corn settled 7 ¼ cents higher at $6.60 ½, January soybeans up 3 ¼ cents at $12.05, and December wheat up 18 ¼ cents at $6.57.
Just like the day before the October Supply and Demand report we found some pre-report buying. Chicago wheat had quite a bit of volume throughout the day, outpacing soybean volume. We did see supportive outside markets to add to the strength as well. Crude oil was up over $1.40 and the dollar down over 300.
Our report estimates are listed in the spreadsheet below. We still think the market may be overestimating demand, and underestimating supply for corn. We are still going with a 41.5 soybean yield which would be unchanged from the latest USDA report. With such a large world wheat stocks number we expect it will continue to weigh on feed grain prices, especially the most expensive one-US corn.
At this point we will just have wait and see what the report says tomorrow morning. We will have the results in the morning grain letter and automated morning phone call. Please call in if you have any questions.
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