With some of the luster fading from the early morning rally grains managed to close higher but were off of their intra-day highs by the end of the day. May corn futures ended 9 ½ cents higher at $6.45 even, beans ended lower at $13.37, down ¾ cents and wheat finished up 8.25 cents at 643. In spite of closing higher on Friday for the week corn closed down 10 cents, while wheat lost 31.5. Soybeans, however, did continue their climb on the week, showing technical strength and ending up 4.75 cents despite the slight loss Friday.
We continue to believe that lower prices are on the horizon with yet another failed attempt by corn to break out above its recent highs. However, the March 31 acreage report is now in the markets sights and that report has provided extreme volatility over the past few years, so we wouldn’t expect this year to be any different. It is likely in the best interest of grain end-users to explore call options in the coming week for spring protection.
We look for the grain complex to open mixed
Daily CME spot market prices:
Block cheese $1.4925 (up 0.75 cent)
Barrel cheese $1.5025 (up 3 cents)
Butter: $1.45 (unchanged)
Grade A NFDM: $1.2675 (unchanged)
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