Sep 16, 2014
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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 8/16/12

Aug 16, 2012

Grains finished mixed on Thursday’s afternoon close.  December wheat held the most support closing 15 ½ cents higher at $8.81 ¾.  December corn closed 3 ½ cents higher at $8.07 ½ while November soybeans settled 9 ¼ cents lower at $16.25 ¼.

 

The Weekly Export Sales Report showed strong soybean sales but corn and wheat both fell below the estimated range.  Corn above $8 has obviously taken a toll on the export pace which has restricted its upside.  At the same time the price can’t afford to fall very far and create a bunch of demand until we know more about the crop size.  For this reason we think we are stuck in a holding pattern between $7.50 and $8.50 until we get further into harvest.

 

While corn is in a supply market we believe soybeans are in a demand market.  Crush continues to outpace estimates.  Exports have been strong.  At the same time the recent rains have the market wondering if bean yields have improved.  In our opinion once we get past the supply question soybeans will have a bigger story than corn.

 

Friday afternoon we will have the CFTC’s Commitment of Traders report as well as Cattle on Feed.  The market is estimating On-Feed to be 100.7, Placed at 91.4, and Marketed at 101.6. 

 

Please contact EHedger at 866-433-4371 if you would like to try our proprietary farm management software called AMMO.  To learn more please visit www.ammoag.com.  Thanks and have a great rest of the week!

 

Chart: December CornDecember Corn

 

Chart: November SoybeansNovember Soybeans

 

Chart: November Soybeans 2013/December Corn 2013 RatioNovember Soybeans 2013/December Corn 2013 Ratio

 (Supports corn planting again but can the ratio stay this low for very long?)

 

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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