Special Grain Market Update
We are changing our bias in corn from Neutral to Bullish
Yesterday’s USDA report could have been enough to break the corn market below the low end of the recent range, but that didn’t happen. We refer to this as a “fundamental rejection”. If we see prices continue to stabilize and firm in the back-half of the week we could start to see a bigger short covering rally. For the May contract, we want to see consecutive closes above 389-390 to spark that bigger rally. 382 is the level the bulls must defend. We are utilizing several different strategies depending on the client, using futures, options, and a combination of the two.
We are changing our bias in soybeans from Neutral to Bullish/Neutral
Soybeans managed to climb higher again today, this time with more conviction. We think the bull camp now has the advantage, so long as they can defend the $9.00 handle through the back half of the week. This was previously support and the breakdown point from January 30th. We are utilizing several different strategies depending on the client, using futures, options, and a combination of the two.
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