EHedger Afternoon Grain Commentary 7-15-2011
Jul 15, 2011
Grains finished stronger today as weather is still the main driving force. December corn finished 6 ½ cents higher, November soybeans up 3 cents, and December wheat down 14 ½ cents.
We have had little change to the 2 week forecast. The latest forecast is calling for a weaker ridge in the later part of next week.
Where is the market headed in the next couple of weeks? This still highly depends on how the weather plays out. From Saturday into the 11-16 day forecast there is a potential for Northwesterly winds coming in. The question also is do we get up and stay into the 100 degree temps next week or are we really looking at low 90’s? This can obviously can vary quite a bit when it is all said and done so we like buying short term options (August corn calls/September bean calls) to help mitigate some of the upside risk for this timeframe.
There were really no headlines to influence the market today besides some outside market reports like CPI and consumer confidence which ended up being non events. We will have to see what weather does over the weekend for direction, as well as crop conditions on Monday. We want to remain with the current hedge recommendations.
Please call your broker Monday if you have any questions. Have a great weekend!
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