I’m taking today’s price action with a grain of salt as the Volatility Index was spiking to contract highs and traders are hedging and cross-hedging for every possible US/China trade outcome by the end of the week. Consider the following:
- The US government is set to raise tariffs on China at 12:01 AM EST Friday,
- The USDA will release its May WASDE Report at 12:00 Noon EST (estimates at the bottom of this email).
- An update/tweet on the outcome of US/China trade talks could come at any time throughout the day.
In today’s chart video I am sharing some commentary on long term lows (including how far soymeal could drop now that 300.0 level is taken out), some movement in new crop calendar spreads, as well as a look at outside markets. Make sure you have your hedges in place or you can tolerate a run toward historical lows, worst case scenario.
Special thanks to the folks at Barchart for inviting me to speak on their talented Grain Market Perspectives panel at the inaugural “cmdtyExchange” today. It was a diverse and thoughtful dialogue with Alan Brugler (Brugler Marketing Management), Darin Newsom, John Netwon (Chief Economist, American Farm Bureau), Kent Beadle (Director of Risk Consulting, CHS), and Dan Basse (President, AgResource).
Contact your broker to discuss your trading or hedging plan!
This article originally appeared in the Technical Ag Knowledge Newsletter “Tomorrow is a Big One **VIDEO Chart Analysis***” at 05/09/19 03:22:29 PM Central Daylight Time.
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