As we’ve previously discussed, large speculators have recently built historically large short positions, setting the stage for potentially significant short covering rallies on new risks to production or shocks to demand.
Technical Ag Knowledge
Moving averages are one of the most basic yet most meaningful indicators out there for potential price support or resistance, in my opinion. Another basic tool is trend lines. When they match up together, I’m taking notice.
Now that the index funds appear to be willing to cover at least some of their extreme short positions in grains, what are some potential technical price targets to consider for the next round of sales or hedges?
“Index Funds” have the deepest pockets of anyone in the futures markets. That’s why it is so insightful to know how they are positioned relative to historical standards.
In our last video, we set the table for how the price pressure into delivery/first notice day looked in past months and the potential for bounce back in the days following. Are we beginning to see that similar pattern play out again in corn?
We’ve seen the grain markets weak through last summer/fall delivery and it appears no different for March contracts this week.
Bulls showed their jitters as hopes for a China trade deal cooled off, following a more positive tone earlier this week.
Technical trading or hedging opportunities are present in several of the markets (corn, soybeans, wheat, etc.) we follow.
Tomorrow could be a big day for price direction in agricultural commodity markets as USDA is set to deliver a heaping helping of data.
With USDA scheduled to release a big trove of data on Friday, is there some kind of message to read in this price action? We’ll take a closer look in today’s video