Walsh Commercial Hedging 10/30/12
Oct 30, 2012
Like the saying goes in real estate, the three things that matter are location, location, and location; the grain market saying this year and especially the last couple days are weather, weather, and weather. After the Midwest endured one of the worst droughts on record, now Superstorm Sandy is causing havoc on any un-harvested corn and soybeans in Pennsylvania and throughout the Ohio valley. On top of that now we have South America weather to deal with. On Monday, traders awoke to news that showers over the weekend were noted in northern Brazil and northern Argentina which has suffered from dry conditions in prior weeks and should replenish soil moisture. However, on Tuesday all of a sudden the trade cited concerns over the weather in parts of Brazil and Argentina. Being a meteorologist=job security. Anyways, getting back to the grain markets it has been a choppy last few days with no fresh news due to Superstorm Sandy causing DEFCON 1 alert status at the USDA. However, they did manage to get export inspections out and soybeans were quite impressive again coming in at 63.4 million bushels of soybeans that had been inspected or weighed for export but “managed money” bunkered down before the storm and took profits on Monday. Today, January beans did break that 1550 mark but quickly went south and settled at 1535 ¼ up 5 ½ cents on the day. December corn continues to be range bound and finished the day up 4 ¾ at 741 ¾ and December wheat closed down a half cent at 857 ½. On a more serious note, I hope everyone at the USDA and the people of the east coast are ok from the storm. The trade will be eagerly awaiting crop progress tomorrow and private analysts will start releasing their crop production estimates on Thursday and Friday. In the meantime, I think the weather in South America just changed again. I should have been a weatherman.
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