Jul 22, 2014
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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.

Grain markets liquidate with rally in U.S. dollar 10/26/09

Oct 26, 2009
SETTLEMENTS 10/26
         
 
Dec 09 Corn
378    
- 19 ¾    
Nov 09 Beans
986 ½ 
- 19 ½ 
Dec 09 Wheat
527  
- 20 ¾ 
Dec 09 KC Wheat
531 
- 18 ½
Dec 09 Min Wheat
545 ¾      
- 15  
Dec 09 Meal
294.8
- 8.5
Dec 09 Oil
37.63
- 0.31
 
 
 
 
 
 
 
 
 
 
 





 
 
Corn, soybeans and wheat all closed sharply lower. A sharp rally in the U.S. dollar caused a sell-off in the equities and the commodities. Managed funds have built massive long positions in the grains and commodities and we saw some liquidation today. This came despite forecasts of wet weather throughout the Midwest this week. This is a great example of how our markets have become financial instruments lately. Harvest progress came in below expectations for both corn and soybeans. Soybeans were 44% complete vs. 30% last week and corn was 20% complete vs. 17% last week. Many were looking for around 50% and 25% respectively. This could add some support to overnight prices. As I have been saying, these markets are very difficult. There are a lot of factors moving our markets that we have never seen before. The uncertainty in the fate of the U.S. dollar, and the state of the economy is causing vast sums of money to move quickly between markets. This is causing increased risks and increased opportunity... 

 




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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.
 
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