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
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