EHedger Closing Grain Commentary 11/2/10

Published on: 17:28PM Nov 03, 2010

Wednesday corn and soybeans closed stronger after trading both sides of the market.  Wheat closed lower.


Grains set wide ranges ahead of the FOMC report.  The report came out after the grain close around 1:15 pm putting the outside markets into a volatile mess.  The US Dollar posted a new low for the move at 75.235 (Dec Futures) within a minute of trading before trading back towards unchanged.  The day ended with the Dollar down only about 350 points.  This weakness could provide support for grains in the overnight session.  If the dollar continues this downward trend it could provide support to all things dollar denominated, giving a boost to our markets.


Tomorrow weekly export sales are expected to be between 350-700 for corn, 400-600 for wheat, and 1 - 1.5 Mill for soybeans. The next major report is the USDA Supply and Demand on November 9th.  FC Stone is estimating corn yield at 154.1/production at 12.523. They are estimating bean yield at 44.9/production at 3.449.  Informa is estimating corn yield at 155 and bean yield at 44.9. 


There is plenty of uncertainty in the outside markets right now. We have already witnessed the funds lowering their net long positions in grains in the last Commitment of Traders report.  We like remaining with the strategy of being well sold with spring call spreads for upside potential.


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