EHedger Afternoon Grain Commentary 9/6/12
Sep 06, 2012
Grains closed mixed after trading both sides of the market Thursday. December corn finished 7 ¾ cents higher at $7.98 ½. November soybeans closed a ½ cent lower at $17.47 after trading as low as $17.26 overnight. December wheat held onto its sharp rally closing 24 cents higher at $8.91 ¾.
Volume was relatively low especially for December corn. Corn open interest has been declining and December corn has been stuck in a range for the past 6 weeks.
Soybeans remained weak for the majority of the trading session which may be a result of the "bearish" FC Stone soybean production estimate yesterday. As you can see by the chart below, the lows of the session were made during the first few hours of the night session, immediately following their production estimate announcements.
The EIA Weekly Report showed ethanol stocks and ethanol production marginally higher. Crude oil stocks were down more than expected but the early gains in crude weren’t held throughout the day. Outside markets were overall supportive with equity index futures leading the way. The S&P 500 reached highs today not seen since January 2008! The US Dollar Index remains low in anticipation of another round of Quantitative Easing expected on the next FOMC report one week from today.
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