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| The brutal choppy trade continues in the grains. Soybeans saw some heavy pressure today from the faster than usual planting. Planting came in at just 3% complete so it’s still far too early but that is a fast start.
Another thing that could also be a negative factor short term is the May basis contracts. They are expiring at the end of the month which could lead to more farmer selling and pressure the markets.
If you remember back in February, this is what pushed our markets to new lows and right after they expired is when we made that bottom.
I don’t think this will push us quiet as low as it did in February, but it could certainly keep on a lid on a rally. After we get this out of the way I could see a similar situation playing out where this marks another low in the market.
The funds are still massively short grains. Holding still near record positions and far shorter than usual for this time of year.
What happens if we get a scare that spooks them and catches them with their pants down..?
We get some sort of weather scare type of event every single year. We will be entering a weather market very soon. They will need a catalyst, but you wouldn’t think they’d want to have that much exposure with all of the uncertainties a weather market can bring….
Listen to todays audio where we go over how we see this market shaking out. Ways you can manage your risk and position yourself to be in the top portion of the market. What to do if you have basis contracts and more
Listen Here: https://txt.so/UficP2
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Choppy trade continues for grains - audio comments
