Good morning!
Normally, this is one of the biggest “Report” days of the year for Ag markets, as we were scheduled to receive USDA’s final 2018 Crop Production summary, Quarterly Stocks, Winter Wheat Seedings, and the January WASDE. However due to the Federal Government shutdown that data is going to be delayed indefinitely.
Along those lines, I would encourage everyone out there to consider what their “next move” will be when the USDA eventually fully reopens. Remember, we will have weeks worth of export/sales data to sift through as well.
- If heavily sold, I think you want to have some upside covered on the Board (call for strategies).
- If heavily undersold, I’d consider booking some sales and owning calls or at least getting some short term weekly puts to get you through the release of data.
- If you are short straddles, perhaps you step aside once you hear the Gov is opening and before all of that data comes in.
Corn, Soybeans, Wheat all continue to trade within the ranges we’ve been talking about. Some good trading opportunities there for those who are nimble. Longer term short straddles should be doing well too.
Contact your broker to discuss your trading or hedging plan!
This article originally appeared in the Technical Ag Knowledge Newsletter “Trading the Ranges **VIDEO Chart Analysis**” on 01/11/19.
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