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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 4/16/12

Apr 16, 2012

Good afternoon. The grain and soy markets ended the day all in the red after much needed weekend rains across the Corn Belt and eastern Plains helped improve soil moistures. Everybody knows the saying “rain makes grain.” The 6-10 day outlook in the Midwest mostly calls for below normal precipitation and above normal temperatures so there could be a record or near record plantings pace by the end of the month. The USDA will delay issuing its crop progress report until Tuesday due to a server outage after a small electrical fire today. The trade is looking for 18%-24% of U.S corn to be planted vs. 7% last week and 6% average. Initial soybean plantings are expected to come in around 2%-5%.

May wheat finished the day down 7 ¼ at 616 ¼. Forecasts for more rain in Western Europe also weighed on wheat. May corn was down 6 at 623 ¼ and new crop December corn was down 10 ½ at 526 ½ because of the favorable weather. However, there is talk of a possible frost around the 22nd/23rd of April, but the risk appears confined to areas north of I-80 on today’s maps. This is something producers and the trade will keep an eye on. May beans finished down 16 ¾ at 1420 and new crop November beans finished down 11 ¾ at 1350. NOPA crush data was somewhat disappointing for the bean market as it showed soybean crush in March at 14.253 million bushels, about 1 million bushels lower than expected. With open interest at a record high and an overbought reading on technical indicators, traders remain concerned with a possible correction over the near term. However, a very tight outlook for the 2012/13 balance sheets, continued strong demand from China, and the uncertainties of the South American bean might have traders buying breaks in beans.
Give us a call if you’d like to review our weekly grain marketing and hedge report at 800.993.5449 or email us at info@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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