Grains traded sharply higher yesterday on the USDA monthly WASDE report released Wednesday morning. The report surprise: U.S. corn carryover was reduced from 745 million bushels last month to 675 million this month, with 70 million bushels increased industrial consumption. For the first time in more than two years, corn eclipsed the $7 per bushel level on both May and July. It gets tricky to know how much higher buying fuel will push prices — they are slightly lower overnight on U.S. dollar strength. If you own corn, it is time to look at buying puts to protect the downside.
Export sales for corn were much stronger than expected this morning, while soybeans and wheat were largely in line with expectations. Look for a mixed opening on the grains this morning.
2/9 Class III Futures: Volume: 1,667 Open Interest (OI) Change: +286 Total OI: 36,881
2/9 Class III Options: Est. Put Volume: 1,768 Total OI: 32,011 Est. Call Volume: 431 Total OI: 25,454
2/9 Spot Markets: Block Cheese $1.9000 (UP 3 , 1 Trade); Barrel Cheese $1.8200 (UP 3, 1 Trade)
Butter $2.1000 (UNCH, 0 Trades); NFDM: A $1.7200 (UNCH, 0 Trade), X $1.6900 (UNCH, 0 Trades)
2/9 Other Dairy Futures Volume: Butter: 86 Dry Whey: 41 NFDM: 67 Class IV: 259 Cheese: 211 International SMP: 0
2/9 Individual Class III Futures Prices, Change, Volume & Open Interest
Feb 11 $16.69 DOWN 1 Vol: 155 OI Change: DOWN 18
Mar 11 $18.55 DOWN 6 Vol: 594 OI Change: DOWN 2
Apr 11 $18.42 DOWN 5 Vol: 258 OI Change: UP 56
May 11 $18.03 DOWN 5 Vol: 151 OI Change: UP 88
FEB-June 2011 Avg: $17.81 DOWN 0.05/cwt
July-Dec 2011 Avg: $16.69 UP 0.03/cwt
FEB-Dec 2011 Avg: $17.20 UNCH
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