EHedger Grain Commentary 1-26-2012

Published on: 17:06PM Jan 26, 2012

Grains finished mostly higher with wheat leading the way again.  March soybeans finished up 9 ¼ cents at $12.22 ¾, March corn unchanged at $6.34 ½, and March wheat up 12 ¼ cents at $6.53 ½.   

Wheat continues to lead the grain markets.  Open interest has actually been RISING in the Chicago wheat contracts since Monday.  This is surprising given the huge swings in the spreads and the fact that we know the managed money was massively short coming into this week.  We think the wheat has a potential to continue to move higher on short covering and there is not much incentive to be short front month Chicago wheat.

Although it was difficult for corn to hold its highs today, the strength in wheat is certainly helping corn stay supported.   Corn has had a lot of hype lately.  We got a price break after the report which led to less producer selling.  This was followed by stronger cash bids and some export business while the price was lower. Today we reached the $6.50 cash level again in many areas and likely had a lot of cash sales contracted.  I think we will stay in the range between today’s highs and last week’s lows for the near term as producer selling steps up again.

Chart 1-26-12

For a free risk assessment using our AMMO Software, please give an EHedger broker a call today. The software combines your cash sales, futures/options, crop insurance, and local cash bids all while taking into account YOUR personal cost of production. Come see where your marketing plan stands.


Best Regards,



Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. The market information contained in this message has been obtained from sources believed to be reliable, but is not guaranteed as to its accuracy or completeness. Market information may not be consistent with current or future market positions of EHedger LLC, its affiliates, officers, directors, employees or agents.