US Dollar strength relative to South American currencies is likely hampering old crop exports in the near term, but managed money funds remain at record short positions combined in corn, soybeans, wheat.
The “SELL” button was getting hit at the 50 day moving average these past three days in corn, throwing some cold water on the short covering party.
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.
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