EHedger Afternoon Grain Commentary 11-14-2011

Published on: 15:48PM Nov 14, 2011

Grains finished the day mixed with December corn down 5 cents, January soybeans up 2 ¾ cents, and wheat down 1 cent.

Outside markets were rather weak and helped lead corn lower.  Over the weekend we had reports of Vietnam purchasing Australian feed grade wheat and Malaysia purchasing Ukrainian feed grade wheat.  Last week it was announced that Openfield, which is a large UK coop, has signed a contract with a US company to deliver feed wheat with the first load being shipped next week.  As wheat continues to undercut corn in many parts of the world (including the US) eventually it will start showing up in the futures price.  Ethanol production is the one source of demand that seems to be really helping basis lately but after the blender’s credit expires this year will the bids still be as strong?

The CFTC’s Commitment of Traders report was delayed until Monday afternoon on account of the holiday.  For corn the Managed Money increased their net long positions by 23,719 contracts of corn as of last Tuesday using Futures/Options combined.  They now hold a net long position of 218,997 corn contracts.  For soybeans they decreased their net long position by 7,435 contracts and now hold a net long position of 28,272 contracts.  They are still net short Chicago wheat but overall net long ALL wheat by 2,394 contracts using futures and options.

Crop progress was also out and still shows the corn harvest well ahead of schedule.  Total harvested is at 93% while the 5 year average is at 82%.  Ohio is still behind schedule at 51% complete.  Beans are also ahead of schedule at 96% complete compared to the 5 year average of 94%.

If you have any questions about your marketing plan or how EHedger may be able to help please give us a call.  Have a great weekend!

Chart: December Corn (Weekly)

Chart 11.14.11

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