Apr 17, 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.

Monday's Grain Market Recap 12-19-11

Dec 19, 2011

Grains started off with a gap higher open last night and continued to hold strength right into the close of the day session.  March corn was the upside leader and finished 18 cents higher at $6.01. January soybeans were up 7 cents at $11.37, and March wheat was up 16 cents at $5.99 ¾.

A less favorable forecast in Argentina was the main reason for the gains overnight.  Surprisingly, it was corn that ended up the strongest.  It was announced that China has begun replenishing state corn reserves.  This should be supportive for their local prices, but as far as importing from the US, we don’t see this as a likely scenario until they burn through more of their own supply first.  On top of this, the Mexican ag minister said that they would unlikely be importing more corn than expected in 2012 due to a poor livestock sector and "other" feed options (wheat).

Since we are coming off of oversold levels these rallies could have some more technical support coming in behind them.  Soybeans gapped above their recent trendline resistance (see chart) and the next major moving average isn’t until the 50-day at $11.80 (Jan).  The March corn 50-day moving average is at $6.305 (see chart).

This week we could see a choppy, low volume trade as many traders will be out for vacation.  Until we get to the January reports there are not a whole lot of major fundamental news events to be expected.  We want to use these rallies to catch up on hedges if necessary.

Chart: March Corn

Red-50 day Blue-100 day Grey-200 day


Chart: January Soybeans

Red-50 day Blue-100 day Grey-200 day

 

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Best Regards,

EHedger

866-433-4371

www.EHedger.com

Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. 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 EHedger LLC, its affiliates, officers, directors, employees or agents.

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