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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 Grain Commentary 4/2/2012

Apr 02, 2012

Grains had some follow through trading from Friday’s report as we saw heavy "bull-spreading" in corn and "bear-spreading" in soybeans.  Wheat was trading sharply lower for most of the day but rallied in the last few minutes to finish only 3 ¾ cents lower.  May corn closed 11 cents higher at $6.55 and May soybeans 18 cents higher at $14.21.

Friday’s USDA report showed a decline in old crop corn supply which is helping May corn stay supported at $1.10 above December.  They didn’t find a large drawdown in soybean supply although the market was surprised with a much lower soybean acreage number than expected.  So far November soybeans have received the largest rally from this report finishing 80.5 cents higher today than where they were on Thursday.  We saw soybean open interest jump 31,000+ contracts on Friday alone which means new money is flowing into beans.  With the new crop corn-bean ratio now trading at 2.54 to 1, more areas may plant soybeans where possible.  We have to remember that the planting intentions were as of March 1st.  The fact that we won’t see the next acreage number until June may help keep soybeans supported to other markets like new crop corn until then.  The next major resistance level should be at $14 (November) as we touched that level multiple times last September and fell from there.  For December corn the 50 and 100 day moving averages are at $5.63 and $5.64 which may be the next areas of resistance.

Friday the markets will be closed in observance of Good Friday and reopen for the Sunday night trading session.  We like staying with the current EHedger recommendations.  If you would like to receive a free trial of the EHedger research including hedge recommendations, please sign up with the link below.  Have a great week!

November Soybeans

November Soybeans

December Corn

December Corn

www.ehedger.com/signup

Best Regards,

EHedger

866-433-4371

www.EHedger.com

 

 

Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. 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 EHedger LLC, its affiliates, officers, directors, employees or agents.

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