E Hedger Grain Commentary 3/24/10

Published on: 16:45PM Mar 24, 2010
Market Settlement Change Low High 
May corn 365    2 1/4 359 366.5
May wheat 476    - 3/4 472 478.75
May beans 960    -8    953.25 967.75
May soymeal 270.90 -1.00 267.5 272.5
May soyoil 39.08 -0.46 39.08 39.53
Apr live cattle 95.725 0.025 94.80 95.85
Apr lean hogs 71.125 -0.80 71.05 71.85
Grain markets traded mixed on the day. For the session corn closed slightly higher, wheat near unchanged, and soybeans 8 cents lower. As expected May corn and wheat tested the contract lows; both contracts traded exactly to those prices. The low for the year in May corn is $3.59 with the low close at $3.62. Trades below these levels may trigger stops and bring forward additional selling. The contract low was set at $3.25 last September. The same goes for Chicago May wheat, which has a contract low of $4.72. Otherwise, the outside markets weighed heavily on commodities. Crude oil was $1.50 lower, but the focus was on the sharply higher dollar that traded to its highest level since May of 2009. The US dollar was trading 1000 points higher above $82. 
The soybean sell off looks to be the result of prices consolidating after strong gains compared to corn and outlooks of growing spring soybean acreage. Meanwhile, corn closed higher on late short covering. This week corn vs. beans has reflected the “acreage battle” we have seen over the past couple years, but the difference this year is that there are plenty of available acres for both. Continue to expect a choppy, volatile trade. Weather appears to have taken a backseat for now as the market positions for the acreage report. As always, please call us with questions.

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