Published on: 17:51PM May 14, 2010
Corn opened the day lower and traded sharply lower through the first part of the session. Corn ended up finishing 6 cents lower on the week. We still believe corn is in a trading range for now. Up at $3.99 Dec corn we saw heavy producer selling and could see end-user buying another 10 cents lower from our current level. Tuesday’s USDA Supply and demand report and recent Chinese corn purchases both confirm there is still stronger than anticipated demand. Even with great weather and great planting progress we could find end user support on breaks. Continued weak outside market influence should be watched closely as it can also offer resistance to the corn market.
Soybeans finished the day sharply lower finishing 8 cents lower on the week (Nov 10.) Today’s NOPA crush estimates fell below expectations by about 7 million bushels. Tuesday’s USDA report also showed carryout to be larger than expected. We still think beans can go lower from here so for a producer we recommend being well protected. Call your broker about today’s new crop Soybean’s recommendation.
Wheat had a tough time keeping its recent week-over-week gains. It ended up finishing 33 ½ cents lower on the week (Dec 10.) There is still plenty of wheat right now with a billion bushel carryout. With wheat getting cheap compared to corn you could see some of that go to feed but we still see wheat going lower. For producers we still want to store wheat when possible and sell into the deferred contract months to collect the carry. Please contact us with any questions.
Get More From EHedger.
Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.html for a free two-week trial of our full member website that gives you access to all our hedge and marketing recommendations, educational tools, market snapshots and much more.
Also learn about our acclaimed AMMO Program that helps producers optimize their marketing strategies using the premier tools and insights in the industry.
Get Organized. Get Ahead. Get EHedger
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.