Grains finished stronger today along with sharply higher outside markets and a lower dollar. December corn finished 4¼ cents higher at $6.52¼, November soybeans finished 3¼ cents higher at $12.63 and December wheat finished 10 cents higher at $6.58¼.
Yesterday’s crop progress report was as expected and didn’t have a large effect on the overnight trade. Last night’s strength was largely tied to the stock market rally toward the later part of the afternoon yesterday. This strength continued right into the morning session, but the market couldn’t hold that support as we finished 14 cents off the day high for December corn and 15 cents off the day high for November soybeans.
The main point to take away from this is that we are still finding plenty of sell pressure on rallies in corn and soybeans. Normal harvest pressure and favorable yields still seem to be holding this market resisted as funds have been heavy liquidators. With the market coming off of oversold status, we could at least see the market hold support until we get more direction from Friday’s quarterly stocks report. The Dow Jones poll of estimates for the report is as follows:
Corn (16) 0.962 0.820-1.050 3.670 1.708
Soybeans (16) 0.225 0.202-0.240 0.619 0.151
Wheat (14) 2.045 1.959-2.247 0.861 2.450
We have discussed some re-ownership strategies and these are largely opportunistic. Corn is still over $1.25 off the highs and soybeans are over $2 off the highs. If you are a producer who is well sold and would like more upside coverage, please call an EHedger broker today for a trial of our services and strategies.
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