EHedger Afternoon Grain Commentary 12-29-2011
Dec 29, 2011
Corn, soybeans, and wheat all finished the day lower as the mid-day weather run called for a wetter weather pattern for Argentina in the 6-10 day time period. Brazil appears to be receiving much needed rains for the rest of this week into the weekend. The grain markets were trading higher early in the session before the weather reports came out. March corn ended up settling 4 ½ lower at $6.38. January soybeans settled 10 ¾ lower at $11.87 and March Chicago wheat finished trading 6 lower at $6.45 ¼.
There wasn’t anything outside of weather that was fresh news today. Weekly US Ethanol production was released and ended up being a new high for the year. It appears to us that blenders are all rushing to take advantage of the credits before they expire at the end of the year. It will be very interesting to see what happens to production after the first of the year. The trade continues to get thinner as we head into the last trading day of the year tomorrow. Weekly export sales will be released tomorrow morning at 7:30am due to the Christmas Holiday. Corn sales are estimated to be between 350,000MT- 550,000MT. Soybean sales are estimated to be between 300,000MT-400,000MT. Wheat sales are estimated to be between 200,000Mt-300,000MT. Tomorrow is the last trading day for December live cattle and also the first notice day January grain futures. Please contact your broker to re-position any hedges involving these contracts.
The next major USDA report will be released January 12th at 7:30am. This report will involve grain stocks, supply/demand and production, and also winter wheat seedings. We will be releasing our estimates for this report in the next week or so. Our major suggestion is that everyone gets in touch with their broker to go over our current recommendations and also be sure that AMMO is updated so that we are well positioned for this critical report.
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