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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 Makes New Lows

Aug 01, 2013

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CBOT markets had another leg down today which means December corn is trading at new lows for the move.  November soybeans closed 13 ¾ cents lower at $11.92 ½, September wheat 6 ¼ cents lower at $6.58, and December corn 12 cents lower at $4.67.

The weekly sales report showed over a million bushels of new crop corn booked for export.  Even with the stronger than expected sales corn made new lows.  The weakness may have been exacerbated as stop loss orders were triggered.  Soybeans broke below $12.00 again but were not able to make new lows for 2013.  The next target is $12.86 ¼ which is the April 2013 low.  Look for stop orders below this level (see chart below).

November Soybeans

After the market closed FC Stone released their first yield estimates for corn and soybeans for the 2013 marketing year.  They have corn yield pegged at 157.0 and total corn production at 13.993 billion bushels.  They have soybean yield at 43.0 and total production at 3.309 billion.  Overall we would say this is more bearish for soybeans than corn.

We are now trading well below the major moving averages which could translate to some short covering support along the way down.  The two week forecast looks mostly favorable for crop development but at some point we may need a wider coverage of rain to secure the next leg down.  If you need to catch up on sales or would like a second opinion of your current marketing plan, please contact EHedger for a complimentary trial of the AgYield.com software.  Have a great weekend!

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Premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders.
EHedger is a premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders.
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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