Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.
Beans Lead Ag Complex Higher
Mar 15, 2012
· Same story, different day: Soybeans upside leader in grain complex overnight; Corn again testing recent highs at 6.66/May, an area that has now been rejected 4 times in 9 trading sessions
· Export Sales this morning at 7:30am CST, estimates:
o Wheat 400k-600k mt
o Corn 550k-850k mt
o Soybeans 650k-900k mt
o Soymeal 75k-150k mt
o Soyoil 0k-20k mt
· Sinograin, who manages China’s state grain reserves, has stockpiled only 1.2mmt of corn from last year’s harvest according to an industry website; States reserves stockpiled over 11mmt from 2010 harvest
· Agroconsult pegging Brazil soy crop at 67.1mmt, down from their Feb estimate of 69.9mmt and current USDA estimate of 68.5mmt
· Outside markets mostly positive to start, US$ slightly lower with crude/metals/equities slightly higher; Sell-off in bonds the last few days should be noted
Grain producers have 2 weeks to decide what type of positions they’ll take into the March 30th acreage and quarterly stocks report. We recommend owning at-the-money PUT options on new crop corn and soybeans. Against these options, we like selling a PUT below the level covered by crop insurance. Call the office for specific details.
As always, call the office with questions or concerns.