Grain futures are higher today on what is reportedly said to be “short covering” – traders unwinding “bets” that grain prices will fall further. Soybean futures lead the way (so far) up .15 cents for the day near their high of $5.09 per bushel at the Chicago Board of Trade.
The USDA said yesterday that most of the crops (spring & winter wheat combined), corn & soybeans have been planted, and emergence coming along greatly. Gov’t figures show corn to be the US’s biggest crop, then soybeans, and then wheat (actually behind #3 – “hay”).
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his view regarding the fundamental assessment of the grain futures market by stating, “Some of these grain (futures) markets appear to have been ‘basing’ for some type of relief rally.” Medina adds, “It will take more market action for corn and soybeans to roll-over into an uptrend, however, and for the wheat markets to decide which way they will trend.”
As mentioned above, the trends for corn, soybeans, and CBT Wheat remain down (while KCBT Wheat is actually “up” in my work). This is the time of year when corn and soybeans rally into the fourth of July period, however, this is a different year than others with ample supply in each of these markets already a factor.
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.