Grain futures are thumbing their nose at glut supplies with their recent rally not seen in months, and its all about China’s demand outlook. Grain futures are up all across the board with soybean futures up another .20 cents trading just over $9.56 per bushel at the Chicago Board of Trade.
It was only yesterday the USDA monthly crop production report was released forecasting even more global grains inventories, but China’s perceived economic situation is what grain traders are focusing on right now. Just when we thought corn futures were on their way down, they made new highs for the year today, and soybean futures are at their highest since August.
“With the grain (futures) markets recent spike, I’d say this is a show of confidence on a global scale,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the grain futures market. Levy added, “…and with ‘La Nina’ weather conditions right around the corner, this could be just the start of higher markets to come by early Summer.”
The grain markets trends are mixed at this time – soybean futures in a newly emerged up-trend, corn futures being revived from contract lows, and wheat futures still in a technical down-trend. I would consider awaiting the dust to settle in these grain futures markets and hopefully a dip to be a buyer before jumping on this high-speed train.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.