The grain market was strong across the board during today’s session. May corn finished 15 1/4 higher at $7.36 3/4. May soybeans finished 17 ¾ cents higher at $14.12. May wheat finished 12 1/4 higher at $8.23 1/2.
Export Sales this morning were within the estimates for corn and beans and a bit disappointing for the wheat. The census stocks report was also out this morning with the numbers coming in near analyst estimates. Also, there were stories that China may lower import duties on US commodities, which provided some support to the grain markets. In addition, the grains found support from the continued weakness in the US dollar. The US dollar is now near 4 months lows.
At today’s close, Nov beans have rallied over 90 cents off last week’s lows and Dec corn has rallied nearly 50 cents off last week’s lows. Even though it appears that the bull market is back on track, there is still an enormous amount of uncertainty in these market. Numerous scenarios could quickly lead to liquidation and sharply lower grain prices. If producers are behind on sales we recommend using this rally to make cash sales and re-own the market using bull call spreads.
Before making any decision producers should get in touch with their broker to go through the strategy in the AMMO Program to see how it will benefit their farm operation.
Thursday thru Saturday EHedger will have representatives at the Commodity Classic in Tampa Florida. Please feel free to stop by the booth to learn more about the AMMO Program and to discuss your individual farming operation. Hope to see you there!
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