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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 Closing Grain Commentary 4/20/11

Apr 20, 2011
It was a large turnaround for grains today with new crop corn taking a major setback after making new highs.  May corn finished 16 ¼ cents lower at $7.32 ¾ and December corn finished 20 ½ cents lower at $6.55 ½.  Soybeans held support but traded well of the highs at 15 ¾ cents higher in the May contract.  November beans finished 12 cents higher at $13.66.  May Chicago wheat finished ¾ of a cent lower at $7.85.
 
We started out the day strong with most commodities sharply higher and the US dollar lower.  The weekly Ethanol Production Report was surprisingly negative down 42 thousand barrels a day vs last week.  This put a little pressure on the corn market but the larger break came after the Mid-day weather model took some moisture out of the 11-14 day range.  Once the market turned below yesterday's lows stops were triggered and we were sharply lower.  Wheat and soybeans followed corn's weakness and came off their highs.  Inter-commodity spreading was also part of the reason beans kept strong and corn sold off as many traders were exiting that spread.
 
This setback in December corn completes a key reversal and may attract more technical sell pressure.  If the forecast continues to come in more favorable we could see a much larger setback than the one today.
 
Weekly export sales expectations for tomorrow morning (in 1000 MTs):
 
Corn:              800 - 1,100
Wheat:           400 - 800
Beans:           200 - 400
  
Tomorrow is option expiration day for May grain options.  Friday the markets will be closed for the holiday.  If you would like to go over your current sales/positions please be sure to check with your broker before things get too busy in the coming weeks.
 

 

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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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