Strong week for grains!
Oct 14, 2011
Grains closed higher with beans leading the way. December corn finished 1 ¾ cents higher at $6.40, November soybeans up 13 cents at $12.70, and December wheat up 4 ¾ cents at $6.22 ¾.
The weekly export sales data was favorable for corn today but beans have held the most support after the Supply and Demand report this week. With the US Dollar sharply lower and equity indices and energies sharply higher, grains had a lot of help from outside markets.
Export sales were as follows:
This year Next year
Wheat 483,600 MTs 17,000 MTs
Corn 1,258,900 MTs 85,400 MTs
Soybeans 672,400 MTs 0.0 MTs
Informa released their acreage estimates this morning and are as follows:
Corn 93.1 million acres, down 1.2mil from Sept estimate, up 1.3 mil from 2011
Soybeans 77 million acres, up 1.2 mil from Sept estimate, up 2 mil from 2011
All wheat 57 million acres, up 385,000 from Sept estimate, up 2.6 mil from 2011
All cotton 12 million acres, unchanged from Sept estimate, down 2.8 mil from 2011
The commitment of traders report this afternoon shows the "Managed Money" slightly reducing their net short wheat position, and slightly reducing their net long corn and soybean positions. With demand picking up in corn this week we could see the liquidation slow down from the funds.
We still like reownership strategies in the January soybean options. Please call in for specific strike/prices. Have a great weekend!
Chart: December corn (keeps settling below the 200 day Moving Average)
Chart: November soybeans (coming well of oversold levels with major moving averages still well above these levels)
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