Corn futures, soybean futures, and wheat futures have all found temporary support after rallying anywhere between .15c-.40c in today’s session at Chicago’s Board of Trade. Importers around the world had been on the sidelines as US grain supplies had been viewed as overpriced with a climbing dollar, but that all changed today.
The US grain markets were at four-month lows within the last two trading sessions – wheat futures finding lows not seen since early October, corn futures retracing back to November lows, and soybean futures also rallying from lows not seen since October. With soybeans, reported weakening demand from China, and ample South American supplies, have been a black cloud over the soybean market since late last year.
“The US grain markets were due for some type of relief rally in the midst of bearish USDA and older news,” said Jeff Evans, a Senior Broker and Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental analysis insight regarding the current grain futures situation. Evans added, “I wouldn’t be too excited about a prolonged rally with these markets because a test of the recent lows should follow.”
All grain futures trends are down with no bottom yet in sight. I am looking to sell short these grain markets, especially once they make a return back to their moving average I follow.
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.