It was déjà vu in the grain complex again today. After the complex opened higher again today, long liquidation ahead of Friday’s pressured the grains into a lower close. May wheat finished down 9 cents at 630 ¾. May corn finished down 10 ½ at 620 ¼ and new crop December closed 13 lower at 536 ¼. The wheat market was also pressured from mid-day weather models that were a little warmer for the 11-15 day outlook helping ease fears of cold weather damage. May corn is already down more than 55 cents from last week’s highs. Overnight, the corn market saw some support on rumors that private buyers from China bought 3-6 cargoes of US corn with some of the total for old crop delivery. However, weak ethanol production, a higher $, and weakness in crude and the metal markets helped to spark some selling early which in turn sparked more fund selling. May beans finished down 2 ¼ at 1367 ½ and new crop November beans finished down 7 ¼ at 1320 ½. Beans were higher most of the day because near perfect weather in the Midwest has traders nervous that producers will push to plant as much corn as possible before shifting to soybean plantings but finished lower on the corn sell off but still held its ground nicely. Producers only have 1 more day to shore up their marketing and hedge any production that is at risk. One thing is for certain, come Friday, the grains will turn volatile and most likely continue once we get into the weather markets.
Give us a call at Walsh Hedging to see what we’re doing to protect our producers from the upcoming volatile markets at 800.933.5449 or email me at [email protected].
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Be aggressive. Be conservative. Be aggressively conservative.
Ehedger Grain Commentary 3/28/2012