Sep 21, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin


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 8-26-2011

Aug 26, 2011

Grains finished sharply higher today after a large corn sale this morning to unknown destinations, the crop tour information, as well as short covering.  December corn finished 20 ¼ cents higher at $7.67, December wheat 9 ¼ cents higher at $7.97, and November soybeans 30 ¾ cents higher at $14.23 ½.

Today’s Pro Farmer crop tour shows most of what was expected which is a sharply lower corn yield.  They are estimating an average corn yield of 147.9 bpa with a + or – of 1%.  For soybeans the average was 41.8 bpa with a + or – of 2%.  These numbers are supportive but probably not enough to cause any major surprises for Sunday night’s trade.  Any changes in the precip forecast between now and Sunday night will be especially critical for the soybeans as many places still need rains.  Looking at the chart below soybeans made a technical breakout to the upside and we could see some follow through buying from this next week.

This morning’s corn rally started off after a large sale of 365,760 MTs of US corn to unknown destinations.  Even with this sale traders were calling the market unchanged to lower.  When the market started trading higher, large volume could be seen between $7.48 and $7.50 and stops were hit above these levels to help push us towards the session highs.

With the Fed Chairman’s speech at 9 am, the US dollar started to fall and equities and commodities were able to rally.  There weren’t any major announcements by Ben Bernanke besides the hint that another round of quantitative easing may come in September as they take an extra day to meet about their "tools".  The announcement was not significant but failing to provide any support for the dollar could eventually mean higher commodity prices in the long run.

Monday we will have crop progress and we will be heading into the end of the month which can be especially choppy on position squaring.  We want to stay in sustainable positions and remain well hedged at these levels.  Please call your broker with any questions. 

Have a great weekend!

Chart 8.26.11

Best Regards,

EHedger

 

For a free trial of EHedger services including the morning automated phone call, daily afternoon market commentary, and/or a free consultation, please contact EHedger at 866-433-4371. You can also visit us at 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.

 

Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions