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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 3/26/12

Mar 26, 2012

The grain complex closed mixed.  Talk of more early planting and long liquidation before the report helped drive May corn down 7 ¾ at 637 3/4.  New crop December corn finished at 553 ¼, down 4 ¼.  For the Prospective Plantings report this Friday, analysts see corn planted acreage at 94.7 million acres which is up nearly 2.8 million acres from last year and the highest since 1944.  A Farm Futures magazine survey pegged corn planted acreage at 95.1 million acres for this season.   The bean complex saw support overnight from a private forecaster that reduced bean production in Brazil to 66.7 million tonnes.  This is down from the 68.5 the USDA forecasted in March.  Just last Thursday Argentina’s government cut its soy forecast, raising concern about tighter world inventories this year.  For the report Friday, analysts have soybean acreage pegged at 75 million acres, little changed from 2011.  May beans finished up 13 ¾ at 1379 ½.  New crop November beans settled at 1329, up 7 cents.  This is the highest May beans have been since September 16th.  May wheat finished at 659 ½, up 5 ¼ for the day.  Short covering earlier in the session and growing concerns for dryness in Western Europe helped support May wheat to high of 670 ½ for the day but the selloff in corn late in the day dragged on the wheat.  Until Friday comes around, I can see continued spreading of beans/corn, fund liquidation, and choppy two sided trading in the grain complex.  I would urge producers to get into some option strategy before Friday to protect yourself from the upcoming volatility in the grains.

Give me a call to discuss how Walsh Hedging can help you better market your grain through our option strategies at 800.993.5449 or email me at tmarcucci@walshtrading.com

 

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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