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.
EHedger Afternoon Grain Commentary 11/29/12
Nov 29, 2012
Weak export sales reduced the early optimism in grains. December corn and December wheat contracts were hit hardest with heavy bearspreading across the board. Wheat has finished higher for 7 consecutive trading sessions and was "due" for a corrective trading session.
Still wheat remains well above the low end of its range as the drought continues to threaten winter wheat crops. We will have our next crop ratings report on Monday but we have had a month of record-low ratings during November. The outcome of these low ratings is still unclear as springtime weather is still paramount but the market agrees that it certainly can’t be good for production.
Weekly Export Sales
Sales were well below the average of estimates and the market had a hard time holding support for the rest of the day.
Estimated Range Actual
Corn: 400,000 – 650,000 MTs 263,500 MTs
Soybeans: 500,000 – 700,000 MTs 319,100 MTs
Wheat: 300,000 – 500,000 MTs 279,300 MTs
Soyoil: 100,000 – 150,000 MTS 121,500 MTs
SoyMeal: 100,000 – 250,000 MTs 365,100 MTs
Wheat and corn are both suspended in the same situation… they can’t overextend pricewise as they still need to compete in the world market. The market has already priced in the Argentine weather problems and the poor winter wheat crop conditions, now it is up to demand to keep the rally going. India has approved 2.5 million MTs for export and more may be on the way to weigh on world prices.
If you would like to receive our expanded commentary including hedge recommendations, morning highlights, and/or morning automated call please sign up using the link below. Have a great weekend!
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.