Grain futures continue to being set-back across the board early this week as reports of agricultural crops being in good shape across the nation come in. Soybean futures are headed for their largest loss in four weeks, corn futures finding their biggest drop since mid-May, and wheat futures have seen their lowest prices for front-month futures contract since early February.
The USDA reported just yesterday 72% of our domestic soybean crops were rated good to excellent. 74% rated in top-condition for the corn crop, but both corn futures and soybean futures are headed for their second monthly drop in futures prices.
“Crop conditions dropped in the good to excellent range last week, but they still remain higher than the same time last year. Even though too much rain can be harmful, investors still believe “rain makes grain” no matter what,” said Laura Taylor, a senior commodities broker at RJO Futures in Chicago, regarding the current grain futures situation.
All grain futures are in newly emerged down-trends at this time with wheat futures being the weakest. I am currently short soybean futures, soymeal futures, and corn futures and am looking to get short wheat futures in tomorrow’s trading session.
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.