Volatility remains high ahead of the report.
Corn and soybeans were the upside leaders as wheat sold off going into the close. March Corn finished up 12 cents, March Soybeans up 15 ½ cents, and march wheat finished down 6 ¾ cents.
Today's rally is a continuation of the double digit choppy trade continued from last week. Most of it can be attributed to money flow. The market is still trying to position itself for the USDA report and for the year. This is causing large fluctuations in the grains, especially the spreads. Dryness in Argentina is also causing the market to put premium back into corn and beans. There were rumors today that China will start buying US corn soon, which are still just rumors. The upcoming report will still dictate the near term trade and set the stage for the 2011 acreage battle.
Export inspections this morning were above last week for wheat/beans, but lower for corn. The US dollar turning lower today helped support grains. Crude oil and gold were both higher as well.
With just one trading day before the report, it is important to re-evaluate your hedges to see if any changes need to be made. I encourage you to use the AMMO program to make sure you are covering your input costs just in case the report is a surprise. These levels are still looking attractive for sales.
If you are looking to add additional protection, or have any market questions, please don't hesitate to give your broker a call.
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