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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.

EHedger Afternoon Grain Commentary 4/19/12

Apr 19, 2012

Grains reversed off their lows from yesterday to trade sharply higher today.  May corn lead the way finishing 19 ¼ cents higher at $6.21.  May soybeans finished 8 cents higher at $14.15 ¾, and May wheat 14 cents higher at $6.24 ¾.

Overnight the markets steadily traded higher.  Concerns over the quality of EU sourced corn have slowed/stopped Japan from purchasing European/Ukrainian old crop corn.  This helped fuel a rally in our markets as demand could pick up for US corn.  Corn export sales were rather poor with new crop actually seeing a negative 2,400 MTs.  Wheat export sales were a little below expectations and soybeans, soymeal, and soyoil were all strong.

                             Estimated Range                          Old Crop            New Crop

Corn                    700,000 – 950,000 MTs                  300,700 MTs       -2,400 MTs

Soybeans             850,000 – 1,100,000 MTs               374,300 MTs       845,000 MTs

Wheat                 450,000 – 650,000 MTs                  365,900 MTs       76,300 MTs

Soybean Meal       75,000 – 150,000 MTs                    300,800 MTs       1,500 MTs

Soybean Oil          0 – 20,000 MTs                              23,900 MTs         0 MTs

 

The funds were estimated heavy buyers of corn today as we have fresh rumors of China purchasing corn.  The rumor mill did not say whether this was old crop or new crop.  The fact that the price of corn and more specifically old crop corn has been hammered over the past week helped make this rally a little stronger.  Soybeans were strong from the start but dropped all the way to negative territory during the midday session.  Even with these massive "flat-price" intra-day moves the July – November bean spread stayed supported all day.  November soybeans are right at their long-term trendline support level (see chart).  If they hold support here we may see the price try to head back towards $14.  If not this would be the first time they break the upward trend since it started back in December and may be a signal for a downside corrective move.

 

Chart: November Soybeans

Nov Soybeans

 

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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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