Walsh Commercial Hedging 4/26/12
Apr 26, 2012
Good afternoon. It was a relatively quiet, mixed trade in the complex today. July wheat finished up 9 at 635 ½ on good export sales and continued uncertainties in weather forecasts for the weekend and early next week. Temperatures in northern Texas wheat areas were well above 100 degrees and this had traders concerned for yield losses. However, traders see a very large US crop if the crops can get through the next few weeks without anymore weather scares. Export sales came in at 386,700 metric tonnes for the current marketing year and 357,300 for the next marketing year for a total of 744,000. The trade was looking for wheat sales to come in between 400-600. July corn finished at 607 ½, up 6 ½ cents while the new crop contract finished down 3 cents at 535. A firm basis market at the gulf and talk that the offers were pulled for delivery in the next few months due to a lack of producer selling helped support old crop corn. Also, ideas of little or no deliveries for first notice day for May corn (up 13 cents for the day) has helped to provide underlying support to the old crop corn. New crop December corn continues to lag behind on talk of active planting in Iowa and ideas that the crop will get off to a fast start this year. Old crop beans had a choppy two sided trade ending the day up 4 ¼ at 1480 ¼. New crop November beans was lower the whole day and finished the day down 11 ¾ at 1358 ¾. Soybean sales were solid coming in at a little over 1.4 million metric tonnes for both old and new crop. The trade was looking for sales to come in between 900-1.25 million. Old crop bean sales came in at 926,000 which helped support July beans early in the session. New crop beans took out most of their gains from yesterday as traders see recent action in soybeans have attracted more beans to be planted from cotton and other grains. All in all, there’s still good revenue on the table, especially in soybeans, to protect at these price levels.
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