Corn prices are approaching January lows. I want everyone to keep their eyes on two contracts. I think these are the keys going forward.
This Week In Grain
Grain bears take the month of May in a route, as new crop prices close on their monthly lows. December corn was down 53 cents for the month, July KC wheat was down close to 90 cents in May and July beans were off a modest 15 cents.
Welcome back from the 3 day weekend. The markets traded like I felt this morning, emerging from a three day fog of inactivity.
Looking for a way to sell some option premium in the soybeans without taking on a massive amount of short term margin risk? Check out the short butterfly call spread.
Learn more about This Week in Grain! John Payne explains what you get as a subscriber to his weekly grain and oilseed commentary newsletter.
This Week in Grain (T.W.I.G.) is a weekly grain and oilseed commentary newsletter designed to keep grain market participants on the cutting edge, so they can hedge or speculate with more confidence and precision. T.W.I.G is designed for those needing a weekly road map for the grain markets in order to stay better informed and educated.
What is a bull pennant? The bullish pennant formation is found within the uptrend of a futures contract.
Sometimes, when I am looking at a market technically, checking out contracts alone can be a bit blinding. The big moves, exaggerated by high frequency trading and speculative froth can be a bit misleading.
The week of anticipation is behind us! By Monday, we will have a better impression of what the market will be dealing with as far as supply is concerned for the short term (grain stocks) and the long term (planted acres).
As we get into the planting season, here is an idea you can use that I think can help cover your hedges or re-own the grain you have already contracted.