EHedger Closing Grain Commentary 5/27/09
May 27, 2009
SETTLEMENTS 5/27
|
July 09 Corn
|
426
|
- 1 1/2
|
|
Dec 09 Corn
|
449 3/4
|
- 1/2
|
|
July 09 Beans
|
1187
|
+ 1 1/2
|
|
Nov 09 Beans
|
1050
|
+ 7 1/2
|
|
July 09 Wheat
|
625 3/4
|
+ 13 3/4
|
|
July 09 KC Wheat
|
675
|
+ 12 3/4
|
|
July 09 Min Wheat
|
779 3/4
|
+ 25
|
|
July 09 Meal
|
386.2
|
- 3.8
|
|
July 09 Oil
|
37.81
|
+ 0.06
|
Corn and old crop beans closed lower while new crop beans and wheat closed higher.
The wheat complex was the leader during the session. The disappointing spring wheat planting progress number added to today’s strength. However, the continued inflow of outside money and shorts continuing to cover their positions appear to be the main factor behind the wheat rally.
The corn market saw the planting progress numbers come in as expected. With planting finishing up, the June 30th stocks and acreage report will be the markets next focus. With the crop being planted late, the market will be watching that report very closely to see if any additional acres were lost. However, with the report still a month away, the corn market could be due for a nice pullback in the meantime.
Old crop fundamentals and the “roll” are still driving the soybean market. Basis levels remain very firm and Chinese demand remains strong. This is keeping old crop soybeans supported. At the same time, the funds are rolling long positions from old crop to new crop. This has pressured old crop soybeans and supported new crop soybeans. Once the roll is over, we could see new crop soybeans come under pressure going into the June report (that is as long as we see favorable weather).
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