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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
Is The Recent Grain & Soy Rally Over? The action these past few days seem as if it has been, what I like to call..."forced buying". In other words buying has occurred in somewhat of a begrudging fashion. This makes me fearful that the bullish cards have been picked up and are now being held by a lot of "weak-hands". Keep in mind many of the traditional large spec's and longer-term position players have been somewhat stumped by the recent move higher and therefore are NOT the ones playing out this bullish hand. What we have to be worried about is if the much shorter-term "algos" are the ones holding these final few cards. If that's the case then any sign of weakness could prompt them to immediately fold and liquidate, causing the grain and soy markets to give back a large portion of their recent gains... I am not saying we haven't seen better fund interest as of late in the commodity markets, because we have. I am just saying a large portion of these late gains are more related to emotions (turmoil in Ukraine and weather) than complete game-changing fundamentals. Just something to think about as we move ahead??? CLICK HERE for my daily grain report....
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