What is going to happen with ag commodity futures in the coming months. Where are we going?
We are getting closer to the ever so important growing season in the United States, and ag futures have been stuck in a rut. Specifically corn.
February 8th, the USDA released another one of their important reports and traders saw a decrease in stocks/yield as well as other juicy information. Overall the report was nothing to get the market too excited. After the close us traders saw yesterday, it leaves me even more curious of where these futures are going to go.
From a chart prospective, we have seen strong congestion in corn futures. Looking at the chart here for CZ9 (dec 19), you can see a possible ascending triangle. I am not completely convinced.
I am torn fundamentally with the idea of larger acres coming and then throw in the size of the corn carry out, which is lower than we have seen in a while.
Off the cusp there are a few very interesting variables at play in the ag futures world. Throw in the continuing trade negotiations and every analyst prediction is radically altered.
For now it will be interesting to sit back and watch how this unfolds.
Comments always encouraged.
Everything here is purely my opinion, and in no way advice or recommendations on making trades. I may or may not hold positions in the instruments I analyze.
L.R.
We are getting closer to the ever so important growing season in the United States, and ag futures have been stuck in a rut. Specifically corn.
February 8th, the USDA released another one of their important reports and traders saw a decrease in stocks/yield as well as other juicy information. Overall the report was nothing to get the market too excited. After the close us traders saw yesterday, it leaves me even more curious of where these futures are going to go.
From a chart prospective, we have seen strong congestion in corn futures. Looking at the chart here for CZ9 (dec 19), you can see a possible ascending triangle. I am not completely convinced.
I am torn fundamentally with the idea of larger acres coming and then throw in the size of the corn carry out, which is lower than we have seen in a while.
Off the cusp there are a few very interesting variables at play in the ag futures world. Throw in the continuing trade negotiations and every analyst prediction is radically altered.
For now it will be interesting to sit back and watch how this unfolds.
Comments always encouraged.
Everything here is purely my opinion, and in no way advice or recommendations on making trades. I may or may not hold positions in the instruments I analyze.
L.R.
Comment:
Up, down, up, down. trade negotiations weighing on this market, will be interesting to see what comes of the trip to China. No clear direction defined yet for this corn market.