Grains drifted in quiet trade heading into Friday’s trade with wheat showing positive gains while corn and beans continued to paint the negative side of the trade ledger.
Today is the expiration of week 2 options on July futures. For corn, the time value on premium for an at-the-money 370 put/call is about 1 cent a bushel as the market has zero fear about market movements. With the market at 369.25, the put (OZC2K7 P3.7) is about 1 ¾ and the call (OZC2K3 C3.7) is ¾.
The wheat crop in France showed slight improvements after recent rains brought some relief. In its weekly crop report, FranceAgriMer estimated that 76 percent of soft wheat crops were in good or excellent condition as of May 8, compared with 75 percent a week earlier, breaking a run of four weekly declines.
Overnight, heavy rains continued to hit SE KS, AR, OK, MO, KY & TN which is a region plagued by wet conditions this planting season. The next 48 hours should see rains in the Southeast and heading up to the Mid Atlantic, but the remainder of the Cornbelt looks dry which should aid planting progress.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
