Grains up today on bullish news!
May 01, 2009
The thing that caught my attention today is how "heavy" (inability of corn to rally on bullish news) corn was today. At the same time beans and wheat seemed to leap high on very limited bullish news.
It seems the reduced crop in Argentina (which is old news) and continued expectation of strong export buying by China and other buyers is keeping old crop beans firm. With old crop leading the way, new crop beans are being dragged up and moving back to levels that could actually start attracting acreage.
On top of this, the wheat market was impressive today with a 2-cent price bounce. July Chicago wheat is approaching 50 cents off it’s winter lows which is encouraging, providing end users know harvest is less than two months away and normally rationing or waiting for new crop starts about now.
Where are the opportunities for grains? It has to be getting a plan together on when and how you are going to sell 2010 corn. Right now we are $4.41 and it potentially looks like another 20 to 30 cents could be added if weather concerns develop. I really am encouraging my brokerage clients to strongly consider a scale up selling program between late May and into late June.
Second, as I’ve been saying for some time, the new crop beans above $9 is a solid long term sell. I’ve been in puts and rolling up as the market rallies.
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