The grains markets in my eyes have entered a liquidation phase with the exception of beans. The volatile nature of the move, combined with options expiration has created a major shift in positions for a lot of traders, putting 3 new strikes in the money just since Thursday for corn.
The weather in the Western and Northern corn belt has not been as bad, but its still wet enough to put a pause on plantings. The guesses for Monday’s planting number comes in around 12% after a 2% completion number last week.
This week it looks to be wheat’s turn in the sell spin cycle as the western wheat crop saw a substantial amount of moisture gifted from mother earth. This afternoon, we will get our first look at the USDA corn plantings report for the year.
This week was a choppy one in the grain markets with corn and wheat trading on both sides of unchanged more than a few times, ultimately settling right where they have been trading for most of Q1, 390 front month corn and 415 Dec Corn, and just above 5.00 Chicago wheat and 5.50 KC wheat.
This week was a negative one for all 3 major grain markets on the back of fundamental selling due to the end of the Brazilian trucker strike, progressive harvest and good growing conditions across most of SOUTH AMERICA and in my opinion, most importantly, a stronger dollar.
Were quickly approaching the start of the planting season as folks along the I-10 corridor look for a weather break to move into the fields. This week will be more livestock centric as we get…
We saw our first up week in wheat for the first time since mid-December will be embraced by wheat bulls as validation that prices have a lot of value near 5.00 in the July contract.
If you have been trading wheat, corn or beans in terms of the Euro, we would be seeing prices somewhat stable or even higher.
The first full week of trading in 2015 is in the books and for corn and beans it was a nascar week with a lot of price movement but were basically right where we were one week ago.
The opinion of most is that the rising USD is bad for grains and ag in general, but the fact of the matter is that corn, beans and wheat have all been independently doing their own thing, rallying in the face of it.