Apr 18, 2014
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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.

Corn Holds Support despite Outside Market Weakness

Oct 17, 2011

Grains finished mixed as the outside markets tumbled. December corn finished ½ cent better at $6.40½.  November beans were the weakest today, down 17 cents at $12.53, and December wheat finished 1½ cents higher at $6.24¼. Given that the Dow Jones futures were more than 225 points lower on the day and the US Dollar Index more than 500 points higher, I would say grains held their own to start the week.

Export inspections at 10:00 a.m. were not favorable for soybeans at all. Expectations were for 30 million bushels of beans when it actually came in at 10.599 million bushels. Corn was at 28.443 (32.5 expected) and wheat was 22.079 (18 expected).

The weekly crop progress report shows corn harvest pace at 47%, which is ahead of the five-year average pace of 41% at this time of year. Soybean harvest pace is at 69%, which is ahead of the five-year average pace of 61%. Wheat planting pace is at 73%, which is behind the five-year average pace of 77%.

Corn, wheat and beans have all come well off of oversold levels. December corn continues to find resistance at the 200-day moving average, which is currently at $6.47 (also the high for the day). Wheat and soybeans are both well below their major moving averages, but soybeans had more of a bullish supply story from the October Supply and Demand Estimates report. For re-ownership strategies, we like looking to soybean calls in January. For specific strikes/prices, please sign up to receive a free two-week trial of our research, including our hedge recommendations, by clicking on the sign-up link below. Have a great week!

www.ehedger.com/signup/

 

Chart: December corn

 

(Red: 50 Day moving average Blue: 100 day moving average Grey: 200 day moving average)

 

Chart: November soybeans

 

(Red: 50 Day moving average Blue: 100 day moving average Grey: 200 day moving average)

 

 

Chart: December wheat

 

(Red: 50 Day moving average Blue: 100 day moving average Grey: 200 day moving average)

 

Best Regards,

EHedger

866-433-4371

www.EHedger.com.

Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. 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 EHedger LLC, its affiliates, officers, directors, employees or agents.

 

 
 
 
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