The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Dustin works with a wide net of large producers throughout the Midwest. His analytical market approach and objective hedge strategy development is specific to the needs of every individual.
The grain market had another week of strength with corn, beans, and wheat all sharply higher. December corn ended up finishing at 3.80 ½, a 9 ½ cent gain from last Friday. Nov beans were up 21 ¼ cents and Dec wheat was up 23 ¼ cents from last Friday. We are coming to the end of the month and end of the 2nd quarter. This recent strength may be end-of-quarter fund buying and it may also be end-of-quarter commodity dressing. This could mean further strength than anticipated over the next two weeks. This week's commitment of traders report shows funds net long position increased by about 20,000 beans and 10,000 corn on Wednesday.
Informa came out with its acreage estimates this morning. Corn was estimated at 89.318 which was a small decrease from their May number of 89.6. Beans were at 78.845, an increase from 78.5. Wheat was slightly higher at 53.75 from 53.6 previously. This week's USDA export sales numbers were good for corn and wheat but negative for old crop soybeans. With the rally today we were able to get our recommendation filled to sell an additional 10% of 2010 corn at $3.84 (Dec Futures.) If you still need to get caught up on this recommendation please call you broker. The mid-day weather run showed an increase in precipitation for the Northern Midwest for Sunday - Tuesday. Otherwise conditions still remain favorable for the majority of the corn-belt.
Looking ahead to next week we could see more strength as we approach the June 30th report and the end of the quarter. The Stats Canada report comes out on Wednesday at 7:30am. The report is data compiled from a survey of farmers which was taken before the weather impacted much of that region, so it may not reflect this weather. If you are not caught up in sales, having your orders placed could be a way to capture any quick/sharp rallies in the market. Please call your broker if you would like to go over your current positions or any recommendations.
Get More From EHedger.
Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.html for a free two-week trial of our full member website that gives you access to all our hedge and marketing recommendations, educational tools, market snapshots and much more.
Also learn about our acclaimed AMMO Program that helps producers optimize their marketing strategies using the premier tools and insights in the industry.
Get Organized. Get Ahead. Get EHedger
Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. 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 E Hedger, its affiliates, officers, directors, employees, or agents. Recipients assume the risk of reliance on and indemnify and hold E Hedger harmless for any and all losses, costs, or tax consequences incurred as a result of their use of market information.
No comments have been posted to this Blog Post