EHedger Afternoon Grain Commentary 10/31/12
Oct 31, 2012
Grains closed sharply higher with corn leading the way. December corn closed up 14 cents at $7.55 ¾, December wheat up 7 ¾ cents at $8.64 ½, and January soybeans up 12 ¼ cents at $15.48 ¾.
It was the last day of the month and last day to set crop insurance prices. The harvest prices are locked in at $7.51 for December corn and $15.40 for November soybeans. Obviously these were well above the spring prices and should help those with production below their guaranteed levels.
Strength was found amid supply concerns of quality-world-wheat and lack of corn offers in South American. Egypt’s GASC had a mid-morning announcement of the purchase of 300,000 MTs between France, Romania, and Russia. Corn also found a technical bounce after holding its 100-day moving average. Next resistance is seen at the 50 day which is $7.64 ½. If that level is breached on a seasonal post-harvest rally look for the next target at the 50% retracement level of $7.77.
December Corn Chart:
The USDA reopened after its two day closure from Super Storm Sandy. Their Weekly Crop Progress report shows corn at 91% harvested and soybeans at 87%. Wheat’s crop condition was less than expected at 40% good-to-excellent and may provide some additional support on the overnight markets.
The funds have begun their rolls with Rogers starting yesterday, Deutsche Bank on Friday, and Goldman will start next week. FC Stone will have their production estimates tomorrow and Informa will release theirs on Friday. To receive a free trial of our commentary including hedge recommendations please follow the link below.
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