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| Decent reversal type action today in the grains. Mostly wheat as Chicago made a great key reversal higher. But the corn and bean charts don’t look as bad as they have.
Does that mean we are going to go higher?
Hope isn’t a marketing plan, but history repeats itself.
The funds are holding a record short. Back in 2016 Brazil had a drought and it wasn’t noticed until right about now.
When that happened corn rallied $1 and beans almost $4. If we did the same thing this year at the same percentage basis... beans were $8-9 back then and rallied almost $4 which was a 50% rally. Imagine a 50% rally in beans. This isn’t likely to happen at all but it would be arrogant to ignore the possibilities.
The stages could very well be set for a rally. There are plenty of potential factors to drive things higher. That doesn’t mean we will have to rally. I mean we could very well see beans under $10 at some point this year.
The other thing we have is China. Who could be playing us like a fiddle. Do you really think they have these big massive crops, or are they trying to drive this market down to come in and buy?
Then we have the weather here in the US. We are having the warmest winter in 132 years. And you better believe there is going to be a lot of talk about drought scare at some point this year whether it comes to fruition or not..
Listen to today’s audio where we go over all the possibilities in our markets, spreading out your risk, courage calls, basis contracts & more
Listen Here: https://txt.so/L4a3r3
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Market audio comments - Hope isn’t a marketing plan
