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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.

Strong Week for Wheat

Sep 27, 2013

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Grains finished mixed with small net changes on the day.  For the week corn settled 3 cents higher at $4.54, soybeans 4 ½ cents higher at $13.19 ¾, and wheat 36 ¾ cents higher at $6.83.  Wheat clearly had the best gains which can be mostly attributed to the global supply situation and short covering ahead of Monday’s wheat production and stocks report.

From the chart you can clearly see where wheat has broken out of its downtrend.  If the short covering continues the next major target would be in the low $7.40’s right at the 38.2% retracement level.

December Wheat Weekly Chart

December Wheat Weekly Chart

We are still bearish corn but if for some reason this wheat rally continues we can see that as providing at least some support for corn.  As you can see from the chart below, corn and wheat have been highly correlated.  If wheat hadn’t caught a bid over the past few days we probably would have taken the lows out again for corn.

December corn (black bars) December wheat (blue bars)

December Corn and December Wheat

The next thing to watch is the report results at 11:00 am Monday, September 30th.  For option strategies to protect your operation through harvest please give us a call for a free consultation (866) 433-4371. Have a great weekend!

EHedger  |  866.433.4371
 
Premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders.
EHedger is a premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders.
Premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders. EHedger is a premier full service commodity brokerage offering risk management services for the agricultural sector as well as professional traders. 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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