EHedger Grain Commentary 4/16/12
Apr 16, 2012
Grains finished lower to start the week. May corn settled 6 cents lower at $6.23 ¼, May soybeans 16 ¾ cents lower at $14.20, and May wheat 7 ¼ cents lower at $6.16 ¼.
Corn continues to get pressure from the favorable planting conditions across the Midwest. Planting progress was expected to come in at 20-25% complete for corn and 2% for soybeans but we won’t get those estimates today due to a fire at the USDA in Washington. This also kept the market from receiving the weekly export inspections which are usually released on Monday’s at 10:00 am. We will have both of these reports for you as they become available.
Some of the soybean weakness today could be attributed to the Nopa crush data which was released this morning. Crush came in slightly below estimates while the oil stocks were slightly above the average guess. Still neither of these numbers were far from the average guesses so this was more likely money flow from profit taking.
May option expiration may also be contributing to some extra weakness as option writers sell futures to cover short puts. May grain options will go off the board on Friday and the corn put open interest is high at the $6.50, $6.40, and $6.30 levels with a combined 43,066 puts just in those three put strikes alone.
For now we want to stay with the current EHedger recommendations. To receive a free trial of the EHedger research including hedge recommendations, please sign up using the link below. Thanks and have a great week!
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