Sep 21, 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.

Closing Grain Commentary 9/13/10

Sep 13, 2010

Grains closed higher again with corn continuing to make new highs for the move.

 
Corn has obviously been the upside leader, this will probably continue to be the one most supported on any sort of breaks. So far corn yields have been coming in mixed, but some of the latest reports have been overall better in the last week as many producers are getting to some of their better corn. Crop progress still shows only 11% harvested, which some were estimating to be 12-15%. Harvest will likely speed up at a rapid pace so we should start getting more results this week from the heart of the belt.
 
Bean yields continue to come in really well. That is why we have seen soybeans lose to corn and we expect this trend to continue. It wouldn’t surprise us to see corn yields come down and bean yields come up from the latest USDA report. Wheat is still concerned about harvesting delays and quality concerns in Canada/Europe.   Wheat’s price is also supported on uncertainty of planting delays in Russia and Ukraine. 
 
Weekly export inspections were at the high-end of estimates for corn, low-end of estimates for soybeans, and low-end of estimates for wheat. Corn and bean crop ratings both lost one percent in the good/excellent category. Corn did jump to 52% mature compared to the 5 year average of 32% mature.
 
Looking ahead we could see continued strength in corn. A lot depends on how much money the funds want to keep throwing into our markets, they are already at record longs. Having orders in above the market is a great way to get caught up on sales as the market figures out how far it has to go to ration demand. If the funds continue to buy the basis will likely continue to widen. For beans strong demand has to remain strong to keep the prices we have, otherwise we will probably be heading lower. Even though bean fundamentals remain bearish, more corn strength could be enough to hold beans supported.
 
For now we like to remain well protected (see hedge recommendations) and continue to monitor yield reports as we get through harvest. Please call your broker if you have any questions.
 
Get More From EHedger.
 
Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.html for a free two-week trial of our full member website that gives you access to all our hedge and marketing recommendations, educational tools, market snapshots and much more.
Also learn about our acclaimed AMMO Program that helps producers optimize their marketing strategies using the premier tools and insights in the industry.
 
Get Organized. Get Ahead. Get EHedger
 
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.
 
 
 
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