Jul 25, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin


EHedger Report

RSS By: Dustin Johnson

Dustin works with a wide net of large producers throughout the Midwest. His analytical market approach and objective hedge strategy development is specific to the needs of every individual.

EHedger Closing Grains Commentary 12/02/09

Dec 02, 2009
 
 
 
SETTLEMENTS 12/02
         
 
Dec 09 Corn
391 ¾        
- 8   
Jan 10 Beans
1034  
- 25 ½  
Dec 09 Wheat
554 ½        
- 8
Dec 09 KC Wheat
551
- 5 ¾   
Dec 09 Meal
317.3
- 7.4
Dec 09 Oil
39.75
- 0.83
 
 
 
 
 
 
 
 
 





 
Corn, soybeans and wheat all closed sharply lower. Yesterday’s poor closes and the lack of “new money” to start the month allowed the grains to break throughout the day. As I have been saying, the recent run-up in prices has cut-off demand. Without more investment money flowing into our markets, the grains will have a hard time holding these lofty levels. Again, I have no idea when or if this investment-buying spree will stop. I hope the money continues to push prices higher and allow us to make even better sales. We are now up to 40% sold on 2010 corn and soybeans. I recommend selling another 10% of your 2010 wheat production. This should put your sales up to 20%. We still have orders in above the market, so make sure to check our recommendations. The key going forward will still be money flow in my opinion. Without more money flowing in, our market will likely break from here. Demand has weakened at current levels, and it seems apparent that corn, wheat and even soybeans will need to break from current levels to reach the USDA’s current demand targets. With a good start to the South American growing season, a slow down in fresh investment buying could cause a quick break in prices as we head in to the next year. This is when it will pay to be a disciplined marketer and have some VERY good sales on the books. As always, give us a call if you have any questions.
 
 
 
 
Get More From EHedger.
 
Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.html for a free two-week trial of our full member website that gives you access to all our hedge and marketing recommendations, educational tools, market snapshots and much more.
Also learn about our acclaimed AMMO Program that helps producers optimize their marketing strategies using the premier tools and insights in the industry.
 
Get Organized. Get Ahead. Get EHedger
 
Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. The market information contained in this message has been obtained from sources believed to be reliable, but is not guaranteed as to its accuracy or completeness. Market information may not be consistent with current or future market positions of E Hedger, its affiliates, officers, directors, employees, or agents. Recipients assume the risk of reliance on and indemnify and hold E Hedger harmless for any and all losses, costs, or tax consequences incurred as a result of their use of market information.
Log In or Sign Up to comment

COMMENTS (1 Comments)

Anonymous
Lofty levels? Corn at $3.50 is not what I would call lofty levels.But compared to the $1.90 of a few years back maybe it is.But geez it is the year 2009!The prices in the stores have'nt been going down!
6:07 AM Dec 3rd
 

Hot Links & Cool Tools

    •  
    •  
    •  
    •  
    •  
    •  

facebook twitter youtube View More>>
 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions