Walsh Commercial Hedging 4/12/12
Apr 12, 2012
Good afternoon. Grain and soy futures opened the day higher and stayed in the green throughout the day with outside markets supporting them. May wheat finished up 11 ¼ at 639 ¼ on continued fears that the overnight temperatures were cold enough to cause some damage in the eastern and southern Corn Belt. May corn finished up a penny and a half at 637 ½ and new crop was unchanged at 546 ¾. Old crop corn was up 8 ½ cents in the first hour of the trade because of strong export sales. Net weekly export sales for corn came in at 959,100 metric tonnes for the current marketing year. The trade was looking for sales to come in between 400-800 metric tonnes. New crop corn didn’t move much on the day as traders see a good rain event for the Midwest into early next week and then a drier trend for later next week, which appears ideal to help the early planted corn emerge, and also to see more active new plantings into next weekend. After closing 3 sessions in a row lower, the soybeans were the big winner today. May beans finished up 19 cents at 1441 and new crop November beans were up 13 ¾ at 1372 ¾ on solid export news and help with the lower dollar. Net weekly export sales came in at 460,100 metric tonnes for the current marketing year and 176,300 for the next marketing year for a total of 636,400. As of April 5th, cumulative beans sales stand at 91.7% of the USDA forecast for the 2011/12 marketing year. Also, on top of the strong weekly sales, private exporters reported daily sales of 189,000 tonnes to an unknown destination. In addition, sales were reported for 115,000 tonnes of U.S beans to China. Uncertainty about the final size of the drought-stricken crops in Brazil and Argentina could still send prices higher, as could concerns the bean prices need to be higher to attract more US farmers to plant soy. I think most farmers have already decided on what they’re going to plant and my guess would be corn.
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