Volatility coming back to day-to-day price movement in the grain markets can create some anxiety and marketing opportunities, but don’t lose sight of the “big picture.”
That’s the advise from Joe Vaclavik from Standard Grain. He told AgriTalk After the Bell host Chip Flory that day-to-day price action shouldn’t be ignored, but the real story of the bean market is that it is basically stuck in a 60-cent trading range, says Vaclavik.
“After a day with bean prices posting 25-cent gains, the ‘big-picture’ council from Joe makes a lot of sense. If you were waiting for a run back up into the $10.30 area to increase some sales, you can’t ignore today’s price gains. But all it really did was get the market back into the middle of the price range we’ve seen in May. Today really didn’t change anything in the big picture for the bean market,” said Flory.
Vaclavik said Monday's close in corn futures wasn’t very constructive for future price gains, but, “I like the way the corn market is trading. There are some fundamental reasons to think corn can move higher – like the crop problems in Brazil - so the corn looks to me like it can still work to the upside.”