The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Andy is a seasoned grain market analyst and the senior account executive at Walsh Hedging. His main focus is assisting producers and end users to better hedge their investments through his various market strategies over his years of experience working on the grain floor.
Good afternoon. Except for wheat; corn and beans saw follow thru buying from Friday’s reports. May Wheat rallied 8 cents on the close to finish only down 3 ¼ cents at 657. The lack of freezing temps in the plains for the 2 week outlook and more rain across the central and southern plains for the middle of the week helped pressure the wheat market most of the day. May corn was up 11 at 655 and new crop December corn finished up 4 ¾ at 545. Continued buying from Friday’s bullish March 1 Stocks report helped push old crop corn to its highest level since the last Grain Stocks report on January 12th. New crop December corn saw some late day buying but with the largest acreage number since 1937 and the 2 week weather forecast looking ideal for planting corn, the old crop/new crop spread is up almost 30 cents higher since the report. Don’t forget the Prospective Plantings survey is from March 1st and the Midwest warm up wasn’t under way yet, so this acreage number might even go higher. However, let’s keep in mind, soybeans rallied more than $2.00/bushel from December into March 1 in order to secure more acres but producers didn’t bite. Undecided producers might be biting soon with May beans finishing up 18 at 1421 and new crop November beans up 27 ¼ at 1385 1/4. The bean market is doing everything it can to entice these undecided producers to plant beans. Both new crop corn and new crop beans are offering producers great opportunities to hedge their crops through option strategies.
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