New Podcast | On the podcast this week we talk about the US Tax Cuts and why it is bullish for the economy, stock market, and commodities. We also go over why we are bullish corn and wheat, which more cautious on soybeans. We also talk about how growing US and Global economy can be bullish for grains, livestock, energy and copper. Click here for Turner’s Take Podcast
WHEAT | Wheat is rallying on cold temperatures across the Midwest. Winter wheat has had poor emergence, dry soil conditions, poor snow cover, and now record cold temperatures. The funds are heavily short this market and we are seeing short covering today. Wheat is the leader up 5 to 6 cents depending on the contract. Corn is up 1 cent while beans are down 5. Wheat is the leader in the grain market and it is a short covering rally.
I like wheat at these prices. We also like Wheat over Corn. We wrote about that last week and we entered that trade in Turner’s Take Market Alert last week. For farmers I think July Wheat trading at or over $4.50 might be a good place to start making some sales if you need to catch up and then sell the $4.50 July Wheat straddle. I talk more about that strategy this week in Turner’s Take Ag Marketing.
CATTLE | The cold weather should be a problem for cattle in the near term. The cold temperatures could lead to loss of cattle but it also leads to lower weights. Short term traders can look for a quick hit higher while medium to long term traders may want to be patient and weight for higher prices to bear spread live cattle.
NATURAL GAS | Natural Gas is also rallying due to the weather. This artic blast should increase demand for heating and Natural Gas is usually the better play over Heating Oil. If you choose to buy futures I would either have a stop or a short dated put for protection
LOW TEMP MAP
Try Turner’s Take Market Alert – for 30 Days
Turner’s Take Market Alert – Trial - Turner’s Take Market Alert includes Daily Updates and an Intraday Trade Recommendation service for Daniels Trading clients.
Turner’s Take Market Alert – includes an email newsletter subscription.
Turner’s Take Market Alert – trial lasts 30 days.
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.
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.