EHedger Afternoon Grain Commentary 10-31-2011

Published on: 15:47PM Oct 31, 2011

Grains were weak today with December corn down 8 cents at $6.47, December wheat Down 16 ¼ cents at $6.28 ¼, and November beans down 9 ½ cents at $12.07 ½.

The sharp break in outside markets and rally in the dollar is again weighing on grain prices.  The US Dollar was almost 1500 points higher today on further concerns over European debt fears and a sharp break in the Japanese Yen.  The Yen/Dollar currency spread was down 628 points or 4.8% and the Euro/Dollar spread was down over 2.25%!  This just basically shows there is a flight back to the US currency and can push dollar denominated products lower if this continues.

December corn continues to finish near the 200 day moving average as it has been for the last 3 weeks.  Export inspections came in at 27.726 mil bu of corn (30.5 expected), 48.518 mil bu of soybeans (42.5 expected), and 20.82 mil bu for wheat (17.5 expected).

Crop progress shows corn at 78% harvested compared to 62% as a 5 year average at this time of year.  Soybeans are also ahead of schedule at 87% harvested compared to 79% on average. 

These reports were not really major market movers and the biggest short term indicator is likely that extra drop the outsides had after the close.  We may open up lower on the overnight session tonight.

I wanted to quickly mention MF Global’s Chapter 11 filing this morning.  By now many of you have probably read the "wallstreet" headlines about MF Global.  If you are looking for a stable clearing relationship please give EHedger a call today to discuss the possibility of allowing us to service you.  You can contact us at 866-433-4371 or send an informational request to [email protected] and we will get back to you in a timely manner.  Thanks and have a great week!

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Chart 10.31.11