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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 6/7/12

Jun 07, 2012

Grains closed stronger with soybeans leading the way.  July corn finished 7 ¾ cents higher at $5.94, July soybeans 41 ¾ cents higher at $14.28, and July wheat up 17 ½ cents at $6.41 ¾.

A drier forecast as well as stronger outside markets kick-started this rally early.  The fact that China lowered interest rates by 25 basis points also helped spur strength early.  The highly anticipated meeting between Fed Chairman Ben Bernanke and Congress was a rather "non-event".  Many analysts were calling for another round of Quantitative Easing which never came.  If and when the "QE3" is announced it is generally expected to be supportive to equities and commodities and bearish for the US dollar.

The new crop contracts were leading the way higher for much of the day and the July – December corn spread ended the session down 9 ¼ cents at +57 ½.  This is partly due to the fact that this rally is weather based and it is supporting the crops in the ground more than in the bin.  It is also could be due to the fact that the Goldman roll started today and the exiting of July contracts is forcing the spreads lower.

Trade direction still highly depends on the morning and midday forecasts.  The latest forecast was a little drier again in the 7-14 day range, obviously supporting grains in the process.  We are finally back above the 50 day moving average for December corn and not far away from the 100 day.  If you would like a free trial of the EHedger research please click on the link below.  To discuss opening a futures/options account please contact EHedger at 866-433-4371.  Thanks and have a great weekend!

 

December Corn ChartDecember Corn

www.ehedger.com/signup 

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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