Just when traders were asking “How low can grains go?”, soybeans found some support today due to Argentine demand for US beans. It looks like Argentina will be buying soybeans from the US after making a deal to sell them to China! Wheat is also leading the markets higher due to analysts continuing to reduce the Australian wheat crop production.
Corn is lagging behind both soybeans and wheat. Soybeans have a demand story and wheat has a supply story, but corn has neither right now. I do think we continue to see strong demand for corn for the rest of the marketing year but the market also thinks yields are going higher in the next WASDE report.
Going forward we see grain markets range bound. Corn should trade between $3.35 and $3.65, soybeans between $7.80 and $8.70, and wheat between $4.80 and $5.50
While the podcast does not have specific actionable trading recommendations, we do publish them in Turner’s Take Market Alert for spec traders and Turner’s Take Ag Marketing for hedgers. Want to know what to look for in the commodity futures markets? Take a listen to Turner’s Take podcast!
Craig Turner – Commodity Futures Broker
Turner’s Take Ag Marketing http://www.turnerstakeag.com
Turner’s Take Spec http://www.turnerstake.com
Try Turner’s Take Ag Marketing – for 30 Days
Turner’s Take Ag Marketing – includes access to premium web content.
Turner’s Take Ag Marketing – includes an email newsletter subscription.
Turner’s Take Ag Marketing – 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.