EHedger Afternoon Commentary

Published on: 15:51PM Jun 23, 2011

Overall markets finished lower but were able to stage a large comeback from how far they had fallen early in the day session. December Corn finished 4 ¼ cents lower after being as much as 30 cents lower. November soybeans 15 cents lower after trading as much as 40 cents lower on the day. December wheat was only 5 ¼ lower.

For one the jobs data this morning sent the outside markets sharply lower. Crude oil was trading as much as $5 lower. The IEA countries announced that they would be releasing 60 million barrels of oil to supply the market after supply disruptions from Libya. 
We also had Census Crush, Weekly Export Sales, and Stats Canada out this morning, all between the 7:15 am overnight close and 9:30 am day session open. Stats Canada was really the biggest story of the 3 reports with acreage increases across all 4 major Canadian crops. The canola acreage is actually a record. So with this as well as technical selling, the markets were able to make some extraordinary moves today.
We also had November beans settle through a major technical level and could spur some more weakness in that contract. Even though corn staged a sharp rally, beans still couldn’t stay supported above this trendline. Look for some more potential downside risk as beans start to break out of their long term wedge.
ZSX11 ~ Daily 06232011 033208pm
With the June 30th report coming out next Thursday, we could likely see more choppy days ahead of us like today. Short term options may be of some use if you need to get some extra coverage for the report. If you have any questions, please give your broker a call.
Best Regards,
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