E Hedger Grain Commentary 3/18/10

Published on: 17:45PM Mar 18, 2010
Market Settlement Change Low High 
May corn 376    2    369 376.5
May wheat 489 1/4 -6 3/4 484.5 494.75
May beans 959 1/2  1/2 947.25 962.5
May soymeal 269.90 2.50 263.9 271.2
May soyoil 39.25 -0.58 39.03 39.76



Corn and soybeans closed slightly higher, while wheat finished lower.  It was a somewhat volatile trade considering that the overnight markets were all lower.  Outside markets carried the negative bias into today with crude oil trading lower and the US dollar sharply higher (above $80).  Export sales this morning were not exciting.  Corn slightly positive; old crop beans lower than expected; wheat/oil/meal was neutral.



Soymeal/soyoil spreads were active again today.  Soyoil selling was linked to the sharply lower palmoil prices and concern about the US biodiesel blend credit.  The credit was not included in the recently passed jobs bill.  The news we have now is that the credit is supposed to be included in the second Jobs bill, but that may not be passed until late April or May and it is meeting some opposition in Congress.


The chart below is of December 2010 corn.  Price action leading up to the March 31st planting report will be interesting since the price appears to be at some key trendlines. 



With the March Acreage report just around the corner, we want to be adequately hedged.  Please ask us about our official recommendations or login to our website to view them.  Also, last week was the first installment of a new video weekly series (http://www.agreportsnetwork.com/cms/education).  As always, call us with any questions.


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