This is a sample entry from John Payne’s newsletter, This Week in Grain, published on Wednesday June 15, 2016.
Today we will hear from FOMC chair Janet Yellen, continue weather observations and get a snapshot of June soybean crush from NOPA. All of this goes on as December corn tests highs from last summer and soybeans chop just below their highs (sorry wheat L).The upper Midwest got rain last night and the forward runs show a break in temperature along with increased chances for moisture going forward. I am not bearish on yield by any means at this point, I remain bearish on price in the long run and think sales at these levels could look pretty good 8 weeks from now.
Let’s first start with weather over the past 24 hours. Nice rains hit the Corn Belt north of the I-80 line beginning just west of Omaha. Folks recorded anywhere between .25 and 3 inches all the way up to the Wisconsin-Minnesota border and east into Indiana. Yes, the parched areas of Southern Iowa were not hit but the rains over the bulk of Illinois should suffice for now. I think we see a crop rating drop next week but it probably comes from states not named Iowa, Illinois or Minnesota. Nebraska being irrigated probably keeps them somewhat high as well. SO what we have is the highest producing areas of the corn belt looking at above trend yields at this point while areas not in high production areas like Tennessee and Ohio suffering a bit.
The weather isn’t that bullish in my opinion but the charts are. Corn is pushing over the highs from last summer in December corn, putting 5.00 within its sights. But I remain steadfast that folks need to be hedging production here but I was talking with Craig Turner and he thinks the catalysts remain bullish for the short term. He thinks waiting until the end of the month to see what the pollination forecasts look like will be something that keeps the market high. It really is a gamble here if you want to sell. You are gambling 1) that you have corn to sell 2) that the macro conditions wont encourage the market to keep rallying and 3) the weather factors not in your area will keep the market on bid.
Selling a great price relative to everyone else is probably correlated with the environment in which you sell. Selling a quiet market is easy, selling a wild bullish beast like this market is very difficult and requires guts of steel. Now is the time for a gut check.
Subscribe to This Week In Grain
This Week In Grain - This Week in Grain (T.W.I.G.) is a weekly grain and oilseed commentary newsletter designed to keep grain market participants on the cutting edge, so they can hedge or speculate with more confidence and precision.
Comprehensive Grain & Oilseed Futures Kit!
Whether you are new to the agricultural commodities industry or a seasoned trader, it is important to have a solid understanding of the markets to assist you and your trading strategies. Through our comprehensive futures kit, you will gain a complete overview of the grain & oilseed markets!
THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.
GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.