Jul 26, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin


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.

Grains close sharply lower on good weather outlook, weak outside markets 7/06/09

Jul 07, 2009

SETTLEMENTS 7/06
         
 
July 09 Corn
342 ¾
- 3
Dec 09 Corn
344 ¾
- 12 ¾
July 09 Beans
1198
- 45
Nov 09 Beans
961
- 45
July 09 Wheat
489 ¾
- 10 ½
July 09 KC Wheat
542 ¼
- 12 ½
July 09 Min Wheat
611 ½
- 6 ½
July 09 Meal
401.5
- 9.7
July 09 Oil
34.24
- 0.94
 
 
 
 
 
 
 
 
 
 
 
 
 





 
Corn, soybeans and wheat all closed sharply lower. The soybean complex led the way down today with soybeans closing 43-cents lower. Corn and wheat remained weak throughout the day as well. December corn closed 13-cents lower and at the lowest level since January 10, 2007. Good weather outlooks and weak outside markets were the main drivers today. Good rains over the weekend and a good forecast for the majority of the Midwest is driving prices lower. The global weather has also cooperated with India receiving the Monsoon rains 12 days ahead of schedule, good rains forecast for China and good rains falling in Australia. The one area of concern remains Argentina, but with so much wheat around the globe the market is not too concerned with Argentine wheat acres. Nearby corn prices remained supported today. The sharp drop in prices has helped nearby corn prices reach “value levels” for some importers. The funds have sold over 100,000 contracts of corn since June 1st, dropping the flat price by over $1/ bushel. This has drawn in some interest from the world buyer to secure some supplies. Nearby corn prices are now higher than for deferred months. This could help support prices in the short-term, but I would continue to use large rallies as selling opportunities. Although end-user buying could help support prices, a bearish weather outlook will likely dictate prices for now. The funds are now shorts in the corn, soybean oil and wheat and large longs in the soybeans and soybean meal. If the weather outlook remains good, we should continue to see the funds liquidate their soybean longs as well. As with corn, I would continue to use large rallies in soybeans as selling opportunities. Our markets had a very large sell-off today. With crop conditions coming in slightly lower on the week (listed below), we could see some kind of a recovery overnight/ tomorrow morning. The Commitment of Traders report showed the traditional funds had the following positions as of June 30th:
 
Long 74,000 contracts of soybeans; long 36,000 contracts of corn; and short 35,000 contracts of wheat.



 

Go to http://www.ehedger.com/sign-up/ for a free two-week trial that includes our hedging recommendations, trades of the day, market recaps or to simply open an account.
 
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.
Log In or Sign Up to comment

COMMENTS (1 Comments)

Anonymous
Geez maybe now DEMAND will pick up!! Endusers will be happy ! And us that grow it can see how we get by i quess!
3:28 PM Jul 7th
 
 
 
 
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