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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.

Tuesday's Grain Market Recap 12-20-2011

Dec 20, 2011

Grains finished stronger today continuing yesterday’s gains.  March corn was 6 cents higher at $6.07. January soybeans were up 7 ½ cents at $11.44 ½, and March wheat was up 8 cents at $6.07 ¾.

Outside markets were very favorable for grain prices today with the Dow Jones up over 300 points and the dollar down sharply.  Crude oil was over $3 higher as well.  For grains not much has fundamentally changed from yesterday to today so I would put most of the gains on outsides and technical support coming off of oversold levels.  Weather in Argentina is still forecasted to be hotter/drier and seems to continue to be providing support as well.

Technically we are right up against that trendline resistance in March corn (see chart).  A close above this could mean another move up towards the 50-day MA at $6.30 ¼.  For beans we are above the recent trendline resistance and coming off of oversold levels.  We could see the January contract edge closer to the 50-day which is at $11.79.

We are still expecting this week to be choppy and low volume trade as many traders will be out for vacation.  Until we get to the January reports there are not a whole lot of major fundamental news events to be expected.  We want to use these rallies to catch up on hedges if necessary.

Chart: March Corn

Red-50 day Blue-100 day Grey-200 day

 

Chart: January Soybeans

Red-50 day Blue-100 day Grey-200 day

 

Please feel free to call an EHedger risk management specialist if you would like a second opinion on your marketing strategy and how we may be able to help. You may also sign up for a free trial of our research using the link below:

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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