Last week, two things went right for commodity markets: a lower dollar index and a negative corn and wheat report.
Both Garrett Toay of AgTraderTalk and Doug Werling of Bower Trading, Inc. are both thankful that report didn’t take those markets lower.
“2017 is in the rearview mirror, now we’re moving forward,” said Werling on AgDay.
Looking to the week ahead and to end January, Werling is focusing on replacement hedging opportunities.
“We’ve got margin positions the lowest they’ve been in a decade and a half—it tells you we’re in a sideways choppy market,” he said.
Toay agrees, but says one never knows when a black swan event could happen.
“As far as selling, naked volatility at these kind of levels probably [isn’t] too attractive unless you’ve got the green to back it up.”
Hear why Werling is “optimistic” on South America on AgDay above.