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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.

Soybeans close near limit down; drags corn and wheat lower 7/07/09

Jul 07, 2009
 
SETTLEMENTS 7/07
         
 
Sep 09 Corn
325 ½
- 9 ¼
Dec 09 Corn
335 ¾
- 8 ½
Aug 09 Beans
1053 ½
- 65
Nov 09 Beans
895
- 68
Sep 09 Wheat
512 ½
- 6 ¾
Sep 09 KC Wheat
544
- 7
Sep 09 Min Wheat
606 ¾
- 5 ¾
Dec 09 Meal
281
- 20
Dec 09 Oil
33.72
- 1.38
 
 
 
 
 
 
 
 
 
 
 
 
 





      Corn, soybeans and wheat all closed lower once again. Soybeans were again the weakest, closing 68-cents lower. Soybean meal led the soybean complex lower and closed limit down. Soybeans have now broken over $2 /bushel since June 1st and closed at the lowest level since April 1st. Corn and wheat were higher towards the end of the day, but the weak soybean market pulled them lower on the close. Good weather, weak outside markets and a lack of bullish news helped fuel the break today. I think we are seeing that although outside influences can determine the price of grains in the short-term, eventually the fundamentals do matter. Unfortunately, it seems that many farmers are now stuck holding onto unsold grain. There is a USDA report on Friday and maybe we will see some sort of rally before then. As a producer, you need to take advantage of any rallies to get caught up on sales. Soybeans gave you the chance to sell them 12-cents higher last night. If the soybean market liquidates like the corn and wheat markets did, those may be the only rallies we get for now. If the weather stays good and the outside markets remain weak, than corn, soybean and wheat should all continue to break. Nearby corn found support over the past few sessions as end-users have likely started to step up. Eventually, this could help the corn market find support but right now the market is in liquidation mode. Just like the market ignored bearish fundamentals on the way up, it will likely ignore bullish ones on the way down (once the bullish fundamentals show up). Hopefully those of you who read this letter have used our advice and hedged your crops before the break. If you need help in these markets, please give us a call. Although things look tough now, the market will always present opportunities. You just need to be ready when those opportunities present themselves.
   
 
 
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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 (6 Comments)

Anonymous
What is Obama going to do besides screw it up more. Maybe you want him to own your farm just like he is trying to own everything else!!
4:40 PM Jul 8th
 
MR KENNEDY
Oh well always next year.
4:05 PM Jul 8th
 
 
 
 
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