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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 rally sharply; corn and wheat unable to follow 7/28/09

Jul 28, 2009
 
SETTLEMENTS 7/28
         
 
Sep 09 Corn
321 
- 1 ¼ 
Dec 09 Corn
330
- 3 ¾ 
Aug 09 Beans
1052 ¾  
+ 31 ½  
Nov 09 Beans
926 ¾  
+ 20 ¼  
Sep 09 Wheat
514 ¾  
- 5 ¾
Sep 09 KC Wheat
550
- 1 ¾ 
Sep 09 Min Wheat
599 ¼  
+ 1 ¾ 
Dec 09 Meal
283
+ 6.8
Dec 09 Oil
34.55
+ 0.25
 
 
 
 
 
 
 
 
 
 
 
 
 
 




        Corn and wheat closed lower and soybeans closed higher. Just as soybeans were unable to follow corn and wheat higher yesterday, corn and wheat were unable to follow soybeans higher today. August soybeans were certainly the driver today. August soybeans opened higher following a stronger Chinese market overnight and never looked back. First notice day for the August contracts is Friday. We are likely seeing some positioning/ rolling from August to the September and November contracts. With the expectation of tight supplies ahead of harvest, few commercials have been willing to give up ownership during delivery. This was certainly a good close for August soybeans and we could easily see another rally tomorrow. We are quickly approaching the “end game” for old crop soybeans. The price of August soybeans will be determined by a very small group of buyers and sellers. If August soybeans have 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. Although I do not think it would last long, it wouldn’t surprise me to see November soybeans rally up to $9.50-$9.80 area. If this happens, you need to be ready to make sales in my opinion. Corn and wheat are still having a difficult time holding on to rallies. Although I think we could see corn find support ahead of the August 12th report, we don’t think corn will be able to put a low in until the farmer sells the remaining old crop bushels ahead of harvest. I would look to make sales if Dec. futures reach the $3.50-3.60 area ahead of the report. Again, each farmer is unique so give us a call if you would like a personalized hedging strategy ahead of the report.
 
 
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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 (1 Comments)


All of my qusetoins settled-thanks!
9:16 PM Oct 31st
 
 
 
 
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