Wednesday, January 12, 2011

Market Comments Day of Jan 2011 USDA Crop Report

Below are comments on report day as well as other info on today’s USDA Report from Country Hedging and RJO.

Markets are called firmer this a.m. behind a overall supportive USDA Report as well as friendly outside markets and a firmer overnight session.

In the overnight session corn was up 5, beans where up 10-15, KC wheat was up a dime, MPLS wheat was up 11, and CBOT wheat was up 13. 

With the report out and coming in bullish calls before we open had corn called up 10-20, beans 20-50, and wheat 10-20.  When the market opened up it didn’t take long before we seen corn trade limit up, beans nearly limit, and wheat up nearly 30; we have seen many 5-10 cent moves in the grains and we have a weak US Dollar and strong equity markets. 

Around noon the outsides have the DOW up 96 points, crude is up about a dollar, and the US dollar has the March down 725 at 80.410.  As for the grains corn is currently up 25 on the nearby; while NC 2011 is up 15, old crop beans are up 60, new crop beans up 35,KC wheat is up a dime, MPLS wheat is 12-15 cents firmer, and KC wheat is up 12.

When the day came to an end we finished with corn up 24 cents on old crop, new crop corn up 12, beans up 58, new crop beans up 35, KC wheat up 14, MPLS wheat was up 12, and CBOT wheat was up 11.

Overall to highlight the report we see the winter wheat acres seeded drop to 40.99 million; which was under the estimate but an increase over last year.

Corn carryout was lowered to 745 million bushels, beans dropped to 140 million, and wheat down to 818 million bushels.

We did manage to extend the streak of corn trading limit at one time or another to 5 consecutive January Crop reports.  Rather impressive in my opinion; fundamentally we did shift, add, or at the very least keep the fundamental bullish factors alive and well. 

With the report and the recent price swings Neutral Nick did have to add some additional trades at the end of the day.

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