Walsh Trading Afternoon Comments for March 20th
Mar 20, 2012
Afternoon Grain Comments from Walsh Trading.
Good afternoon. Well, there was no "Turn Around" Tuesday in the grains today. A more bearish tone in outside markets forced the grains lower this morning and continued throughout the close. A stronger US dollar and economic concerns coming out of China plus weakness in metal and energy markets all combined to spark the selling. May wheat finished down 9 3/4 at 642 1/2. May corn finished down 16 at 647 1/2 and new crop December was down a dime at 561 1/2. Funds were lightening up their positions and taking profits in corn throughout the whole session. Traders also saw the unusual warm weather and talk of early plantings as a negative force which could have helped spark some more profit taking and long liquidation. Planting corn this early in the season in Illinois/Iowa is pretty much unheard of. There are some producers out there rolling the dice and planting though. Iowa producers who plant before April 11th would not be able to collect on their crop insurance policies if a frost were to require them to replant. For Illinois producers, the cutoff date is April 6th. The 2 week forecast calls for above normal temps and plenty of moisture though. May beans finished down 21 1/2 at 1345 and new crop November was down 18 1/4 at 1307 1/4. Follow thru technical selling from yesterday's reversal action added to the negative tone early in the beans and talk that the outside-day down reversal occured on the first day of spring added to the selling. All in all, traders are keeping their eyes on the outside markets and unusual warm weather in the Midwest until the Prospective Plantings and Grains Stocks report come out March 30th.
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