EHedger Closing Grains Commentary 12/02/09

Published on: 17:35PM Dec 02, 2009
Dec 09 Corn
391 ¾        
- 8   
Jan 10 Beans
- 25 ½  
Dec 09 Wheat
554 ½        
- 8
Dec 09 KC Wheat
- 5 ¾   
Dec 09 Meal
- 7.4
Dec 09 Oil
- 0.83

Corn, soybeans and wheat all closed sharply lower. Yesterday’s poor closes and the lack of “new money” to start the month allowed the grains to break throughout the day. As I have been saying, the recent run-up in prices has cut-off demand. Without more investment money flowing into our markets, the grains will have a hard time holding these lofty levels. Again, I have no idea when or if this investment-buying spree will stop. I hope the money continues to push prices higher and allow us to make even better sales. We are now up to 40% sold on 2010 corn and soybeans. I recommend selling another 10% of your 2010 wheat production. This should put your sales up to 20%. We still have orders in above the market, so make sure to check our recommendations. The key going forward will still be money flow in my opinion. Without more money flowing in, our market will likely break from here. Demand has weakened at current levels, and it seems apparent that corn, wheat and even soybeans will need to break from current levels to reach the USDA’s current demand targets. With a good start to the South American growing season, a slow down in fresh investment buying could cause a quick break in prices as we head in to the next year. This is when it will pay to be a disciplined marketer and have some VERY good sales on the books. As always, give us a call if you have any questions.
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