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Walsh Trading: Afternoon Grain Comments

RSS By: Andy Kopale, AgWeb.com

Andy is a seasoned grain market analyst and the senior account executive at Walsh Hedging. His main focus is assisting producers and end users to better hedge their investments through his various market strategies over his years of experience working on the grain floor.

Walsh Commercial Hedging 3/30/12

Mar 30, 2012

Good afternoon. Out of todays two pivotal planting and supply reports, the Prospective Planting’s Report was the big shocker of the day. All of the numbers that came out were not even inside the analyst’s range of estimates. The USDA pegged corn planted acreage at 95.864 million acres compared with trade expectations at 94.7 million. This is the highest planted acreage since 1937. Record amounts are expected to sown in Iowa, Minnesota, North & South Dakota, and Idaho. Soybean plantings were pegged at 73.9 million acres, increasing concerns about tightening global supplies of the oilseed due to poor harvests in South America. Analysts had expected soy plantings to increase to 75.393 million acres.  All wheat acreage for 2012 came in at 55.908 million acres compared with trade expectations for 57.4 million. For the Grain Stocks report, the only surprise came out of corn with March 1st stocks pegged at 6.009 billion bushels as compared with trade expectations at 6.15 billion which is about 140 million fewer bushels of corn than expected. With weather looking pretty favorable for planting in the following weeks coupled with a lower stocks report, the trade saw the CK/CZ spread surge up 24 cents for the day closing at 103 ¾. The report was considered very bullish for November soybeans. The market may need to push above $1400 into the planting season to attract more acres. All in all, the focus now will be on Mother Nature, as a continuation of the unusually warm conditions could favor an even larger corn crop.

Give us a call to discuss further how we can help you do a better job on your marketing at 800-993-5449 or email us at info@walshtrading.com. Have a great weekend!
 
Walsh Commercial

 

Futures and options trading involves substantial risk. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. In no event should the content of this letter be construed as an express or an implied promise, guarantee, or implication by or from Walsh Trading Inc. that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided in this correspondence is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. The risk of loss in trading commodities can be substantial. You should carefully consider whether such trading is suitable for you in light of your personal circumstances and financial resources. Only risk capital should be used.
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