EHedger Closing Grains Commentary 11/17/09

Published on: 16:23PM Nov 17, 2009
Dec 09 Corn
401 ¾      
- ½   
Jan 10 Beans
1031 ¼ 
+ 21 ¼ 
Dec 09 Wheat
574 ¼      
+ 12 
Dec 09 KC Wheat
+ 13 ¾ 
Dec 09 Min Wheat
+ 7 ¾  
Dec 09 Meal
+ 4.3
Dec 09 Oil
+ 0.18

Beans and wheat closed higher while corn closed slightly lower. Today appeared to be dominated by the technical trade. Once it was clear that beans were going to have a technically strong close, buying poured into the market to push the Jan beans up to their highest close since Mid August. Wheat also had a solid close but corn never managed to find the buying interest. Oil world came out and once again cut Argentina’s bean crop estimate. Who knows where that crop will end up but it is extremely early to start making those kinds of cuts to Argentina’s bean crop. From a fundamental standpoint, grain prices are at lofty levels. There is still room for debate on where exactly the crop will end up, but in general the US is going to have a solid crop and at this point the demand does not justify prices moving significantly higher from here. However, that does not mean that technical traders, money flow, and inflation fears cannot make prices move higher. Even though this could happen we don't think producers should sit on large amounts of unsold grain. We recommend that producers... 
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