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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.

Soybeans make new highs 6/04/09

Jun 04, 2009
 
 
SETTLEMENTS 6/04
         
 
July 09 Corn
448 ½
+ 16
Dec 09 Corn
471 ½
+ 16 ½
July 09 Beans
1230
+ 48
Nov 09 Beans
1081 ½
+ 34 ½
July 09 Wheat
635 ¼
+ 17 ¾
July 09 KC Wheat
690
+ 18 ¼
July 09 Min Wheat
761 ½
+ 28
July 09 Meal
399
+ 19.5
July 09 Oil
40.34
+ 1.09
 
 
 
 
 
 
 
 
 
 
 
 
 




 
Corn, wheat and soybeans all closed sharply higher. The grains were able to rally today despite weak exports sales and improved weather forecasts this morning. All of the commodities were sharply higher today and this “trumped” everything else. Money continues to pour into our markets and this is driving prices higher. Eventually the fundamentals will matter, but right now money flow is determining prices. No matter how you slice it, the markets closed strong today. Soybeans closed on fresh highs for the move and corn closed just below them. Wheat was the weakest today, but if more money comes in tomorrow wheat could certainly rally back to the highs. I do not know how much money will enter our markets, or how long it will last. If money continues to push prices higher and IF fundamentals continue to worsen, than cash will need to disconnect from futures. End-users are going out of business, and eventually something will need to change. If prices for beef, chicken and pork don’t rise and allow producers to “pay up” for high priced grain than cash prices will need to fall. If the market continues to rally because of “outside” influences, than futures and cash prices may head in opposite directions. Basis levels are very good for many areas of the belt. If your basis levels are good, I would avoid leaving your basis “open”. There is no need to take on the extra risk. 
 
 
 
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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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COMMENTS (3 Comments)

Anonymous
You do realize if all the end users go broke - there will be no market for your "well deserved" high price corn
12:02 PM Jun 5th
 
Anonymous
We tried artificially keeping commodity prices low with deficiency prices and ldp payments but ewg and the public outcry said it didnt like such large direct payments to farmers. This is a cycle someday things will turn the other way where the farmer goes broke again and than nothing will be said. As far as livestock they feed cattle almost everything now days except corn and barley. Just aint the same beef I grew up with on the farm. You cant beat ground oats,barley, and corn to finishem off for your best tasting beef.
10:46 PM Jun 4th
 

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