Yesterday’s Close: March corn futures finished yesterday’s session up 5 ½ cents, trading in a range of 5 ¾ cents. Funds were estimated buyers of 18,000 contracts on the day.
Fundamentals: Export sales this morning came in at 1,266,500 metric tons, well above the range of estimates. First notice day for December futures is tomorrow, to avoid risk of delivery, longs must be out of their positions by today’s close. Yesterday’s weekly ethanol report showed production increased 6,000 barrels per day to 1.048 million bpd. Ethanol stocks currently stand at 22.9 million barrels.
Yesterday’s Close: January soybeans finished yesterday’s session up 13 ¾ cents, trading in a range of 21 cents on the day. Funds were estimated buyers of 8,000 contracts.
Fundamentals: There was a flash-sale of 268,748 metric tons to “Unknown”, likely China, yesterday morning. That ignited short covering on the open as funds tighten the books ahead of the G-20 summit where the U.S. and China will meet face to face. We are not expecting much to come of this, outside of hot air. But as mentioned earlier in the week, the small chance of something happening has led to a short covering bid in the market. Export sales this morning came in at 628,800 metric tons, within the range of expectations.
Yesterday’s Close: March wheat futures finished yesterday’s session up 4 ¾ cents, trading in a range of 8 cents for the day. Funds were estimated buyers of 5,000 contracts.
Fundamentals: Export sales this morning came in at 377,100 metric tons, within the range of expectations. If you want to be long wheat, something we have been working with clients on is buying the KC/ZW spread; buying the Kansas City contract and selling the Chicago (feel free to call/email with questions). Also, on our radar is the US dollar, which has started to soften up over the last two days. If we see follow through this could put a bid into the wheat market.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.