Grains were mixed in the overnight trade with corn slightly weaker and soybeans posting modest gains. Wheat managed to add to yesterday’s rally in the overnight session. In outside markets, crude oil sunk nearly $1 a barrel and stock futures were lower as well.
Crop condition reports released on Monday from key winter wheat states showed little change in the crop’s quality. Number 1 producing state Kansas slipped from 57% to 56% good-to-excellent while Oklahoma was unchanged on the week at 63%. Texas inched higher to 48% versus 47% last week. Colorado showed a bigger bump going from 43% last week to 51% this week.
In corn, prices are getting closer to short term highs of $3.73 ½ against May futures set back on Feb 22. Yesterday, Mexico hedge accounts were noted as active buyers of corn calls for July, suggesting there are looking to shore up price protection on purchases.
Crude oil came under sharp selling pressure as the two-month rally has left traders wondering if it is overdone. Crude stock numbers from API will be released at 3:35 PM CDT today. Last week’s estimate showed a huge weekly build of 8.8 million barrels with traders only expecting a 2.7 million barrel build.
Fed chair Yellen is giving a speech today which will be monitored by investors. Most experts expect Yellen to re-emphasize on Tuesday her previous insistence that all meetings were “live”, meaning that rate decisions could happen at any point in time, though markets place low odds on any action happening in April.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a dba of Foremost Trading LLC (NFA ID: 0307930)
