Walsh Commercial Hedging 4/5/12
Apr 05, 2012
Good afternoon. Grains finished the short weak on a mixed note despite the strong export sales this morning. May wheat finished down ¾ at 638 ½. The frost threat continues to abate in the U.S and more rain relief for dry areas of Europe are keeping any rallies in wheat in check. May corn finished up a penny and a half at 658 ¼ and new crop December was up an impressive 6 cents at 550 ¼. Old crop corn export sales came in at an inspiring 937,000 tonnes and new crop came in at 185,000. The trade was looking for a combined estimate of 400-800. The impressive old crop sale helped May corn jump 7 cents on the opening but the early gains faded as profit-taking set in. Also, profit taking on the old crop/new crop corn spread weighed on May corn. May beans was the winner today finishing up 14 ½ at 1434 while new crop November beans were up 6 cents at 1381 ½. USDA reported weekly old-crop bean export sales totaling over 400,000 tonnes while new crop sales exceeded 700,000 tonns which were also above trade expectations. The trade was looking for combined sales for beans to come in between 570-1.00. It was a relatively slow news day in the grains with the dollar trading higher for the day. However, given the 3 day weekend and all eyes on the weather which can change on a daily basis, I can see volatility pick up for Sunday’s night trade. We’ll have the estimates for Tuesday’s WASDE report on Monday. Happy Easter!
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