Apr 19, 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.

EHedger Afternoon Grain Commentary 8-24-2011

Aug 24, 2011

Grains finished lower today after a small range.  December corn finished a ½ cent lower at $7.43, December wheat 7 ¼ cents lower at $7.77 ¼, and November soybeans down 3 ¾ cents at $13.93 ½.

Today there was not much for fundamental changes to go off of besides more crop variability coming out of the Pro Farmer crop tour.  The Indiana yield estimates were considered "bullish."  They will release the IL and IA numbers tonight.

Outside markets were very mixed with the Dow Jones sharply higher but gold having the largest drop since 2008, down over $100.

November soybeans came up against resistance again hitting a day high of $14.03 ¼ before coming well off the highs.  The contract high remains intact at $14.11 ¼.

Export sales will be released tomorrow and are as follows (in 1000’s of MTs)

Corn                                    500-700

Wheat                                  450-750

Soybeans                            750-900

Source: Reuters

With so much supply uncertainty this market seems to want to remain supported and we may see soybeans make the next move higher if we don’t see some adequate rains soon in the problem areas of the Midwest.  As we can see by the chart below, soybeans have been stuck in a trading range since the early part of this year and we are right at previous resistance points.  If we can push through contract highs at $14.11 ¼, we may see this rally extend on technical buying.

We also have the Jackson Hole summit where we can expect Fed Chairman Bernanke to speak about Fed policy.  Last year at this time he announced QE2 at the end of the week.  This year the market is speculating that he could announce a third round of quantitative easing during his speech.  We will have to wait to find out.

Please call in if you have any questions.

Chart 8.24.11

 

Best Regards,

EHedger

 

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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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