Published on: 16:51PM May 04, 2010
Corn closed lower, soybeans closed mixed and wheat closed higher. All three markets opened lower mostly in response to a sharply higher U.S. dollar, sharply lower stock market and sharply lower energy market. The grains found some buying around key technical price points and this helped futures prices rally. Buying in the final 5 minutes helped wheat prices rally 6-cents and corn rally 5 cents. Unlike crude oil and the stock market, the grains have already been on large breaks. So far the growing season has been very good and as long as this continues this should help keep a lid on prices. There are some calls for some frost/freezing temps next week although temperatures do not look to get cold enough to do much damage if any. Still, this could be causing some buying “just in case” temperatures come in colder than expected...more times than not these rallies are selling opportunities. With options reasonable priced, I would look at buying some calls if you were concerned about a late frost.
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