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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.

Beans lead the charge on higher grains market 7/30/09

Jul 30, 2009
 
SETTLEMENTS 7/30
         
 
Sep 09 Corn
332 ¾  
+ 12
Dec 09 Corn
342 ¼
+ 14 ¼ 
Aug 09 Beans
1128 
+ 70 ½
Nov 09 Beans
970 ½  
+ 54 ½  
Sep 09 Wheat
515 ¾  
+ 4 ¼
Sep 09 KC Wheat
549 ½ 
+ 3
Sep 09 Min Wheat
600 
+ 1 ¾
Dec 09 Meal
296.5
+ 14.5
Dec 09 Oil
35.65
+ 1.87
 
 
 
 
 
 
 
 
 
 
 
 
 
 




      Grain futures closed sharply higher today with soybeans leading the charge. Volatility still remains ever present in the commodities markets. Yesterday, August soybeans managed to rally to finish higher on the day despite deferred contracts settling lower. This move gave traders confidence to buy or short cover soybeans overnight ahead of today’s sales figure. Today’s sales were very strong for corn and beans. In addition, private exporters reported a sale this morning to China with 1.8 million tonnes for delivery for 09/10 and 120,000 tonnes of old crop. These strong sells are keeping attention on tight old crop supplies and talk of a “squeeze” in Aug beans. Tomorrow is first notice date for the August contract and the price of August soybeans will be determined by a very small group of buyers and sellers. If August soybeans continue a sharp rally from here and new crop soybeans follow, I would use that opportunity to get caught up on sales if you have not done so already. We know today’s strong close has left the charts looking positive technically, so a further rally cannot be unexpected. Even though the extent of today’s rally was unexpected the current value of today’s prices are at levels recommended to be a scale up seller. The corn market also had a strong day thanks to strength in soybeans, strong financial markets, and crude oil, which nearly erased all of yesterday’s $4 loss. Corn will remain tied to soybeans, but unlike beans positive corn stories still appear limited. Weather for much of the Midwest remains non-threatening and any potential acreage loss looks to be offset by a yield increase. I would look to... Today’s action added a lot of value back to bushels, so be ready and willing to capitalize on the movement. Give us a call to get a plan in place.
 

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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.
 
 
 
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COMMENTS (10 Comments)

Anonymous
55 cents in one session (Nov) is one hell of a bounce for any dead cat.
1:56 PM Jul 31st
 
Anonymous
It's called a dead cat bounce. Up these couple days, and back down for a couple weeks.
1:25 PM Jul 31st
 
 
 
 
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