Grains finished stronger with December corn up 6 ¼ cents, January soybeans up 4 cents, and December wheat up 19 ¾ cents. Though we finished stronger, soybeans and corn came well off their day session highs before settlement.
Supportive outsides contributed to the strength today, but otherwise it was a Tuesday without much fresh fundamental news. Yesterday’s Commitment of Trader’s data showed massive liquidation of corn and increases to short positions in wheat/beans by the "managed money". Wire reports this morning show Japan has already increased their imports of feed wheat substantially and are expected to continue through March (bearish corn). Even though the outsides were supportive today we still haven’t resolved the issues that are plaguing Europe right now (bearish dollar denominated assets such as commodities).
Even though we are coming off of oversold levels we remain with our bearish stance for grains. We still feel corn/wheat are overpriced and until the world burns through its supply of wheat, corn will have a hard time sustaining any rallies. Soybeans are well oversold and off of their moving averages by quite a bit. Unless there are any weather problems in South America it may be hard for soybeans to sustain any rallies as well. First notice day for December futures is tomorrow, Wednesday November 30th for the following: December Corn, Wheat, Soybean Meal, Soybean Oil, Oats, Treasuries, and Metals.
Please call EHedger if you would like to discuss developing a marketing strategy for 2012. Our grain marketing software can help you discover your risk based on your current strategy and help you make marketing decisions going forward. Have a great week!
Chart: December Corn
Chart: January Soybeans
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