Corn, soybeans, and wheat closed lower.  It was an extremely volatile session, especially for soybeans which traded within a 25-cent range.  Futures opened weak on bearish outside influences.  Crude oil and the stock market were sharply lower, while the dollar was higher.  Yet, these negative influences were shrugged off and grains staged an impressive intra-day rally on further technical buying and short covering.  Corn traded slightly higher, soybeans traded 15-cents higher, and wheat managed to trade back at unchanged.  Soybeans were led by bull spreads the majority of the day, even though the close does not reflect this.  Tight old crop supplies amid concerns of wet South American weather drove old crop higher in relation to outlooks for a large new crop.  Also, featured today was meal/oil spreading with soyoil following the sharply lower crude oil.  May soybeans ran into stiff resistance at the 200 day moving average of $9.85 ½. 

However, the midday gains could not hold as contracts turned back lower and settled at the day's low.  The action reflects the volatility and overall negative fundamentals.  Slightly bullish information has come forward this month, but the big picture still points to available spring acres and large South American production.  In the absence of any real news resistance will still be price levels from the January report, such as $4.10-4.20 December 2010 corn and $9.50-9.80 November 2010 soybeans.  For many producers these are profitable levels. 

There was also talk about the USDA re-survey. The late harvested crop is thought to be smaller than what the USDA currently has written down.  However, regardless of the findings there are bushels that will have to be moved as temperatures heat up and quality becomes a larger concern.  This will put pressure on the corn market on further advances. 

Please call us if you have any questions.

Get More From EHedger. Our commentaries are just one part of our whole risk management service. Please go to http://www.ehedger.com/getmore.htmlfor 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.