EHedger Closing Grains Commentary 10/27/09

Published on: 10:24AM Oct 28, 2009
Dec 09 Corn
370 ¾     
- 7 ¼
Nov 09 Beans
973 ½ 
- 13
Dec 09 Wheat
503 ¼   
- 23 ¾
Dec 09 KC Wheat
510 ½  
- 20 ½
Dec 09 Min Wheat
526 ½     
- 19 ¼
Dec 09 Meal
- 7.2
Dec 09 Oil
- 0.15

Corn, soybeans and wheat all closed sharply lower. Today was similar to yesterday. Another rally in the U.S. dollar caused a sell-off in the equities and the commodities. The Delta and Midwest look to get some additional rains late this week, but next week looks mostly dry. Corn, soybeans and wheat have all setback to key technical levels. Weather and the U.S. dollar will likely dictate which direction we head from here.   Due to the rally in October, many producers will not receive crop insurance payments and will not have any downside protection. If you fall into this category, I would certainly make sure to make sales and/or have protection through the winter. There are a lot of "new longs" in the commodities because of the falling dollar. If the dollar continues to rally, this could cause a large sell-off in the commodities. Because harvest is late and the moisture is high, we will see a lot of bushels be sold off of the combine rather than stored. If the funds decide to sell at the same time, we could have a very sharp sell-off. I have no idea if this will happen or not, but so far the market has done whatever it can to hurt the most people.... and that would hurt the most people. For more…
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