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| Have markets finally found a bottom?
Corn and beans both look like they are trying to find a bottom and reverse while the wheat market has managed to put together 3 strong days in a row.
Beans missed yesterdays highs by a few cents. The bean market is trying to put in a bottom, but we need to close above Friday’s highs. The bean market is also very oversold. The main thing I look at is the candles we have left. We’ve had 4 out of 5 sessions where we closed well off our low or left a reversal type of a candle on the charts and to me this looks like a market that is trying to set some lows and rebound. If we can break $12.30 I could see us potentially looking to close that gap from the new year.
The corn market also looks like it’s trying to put in a bottom. But this market is still a depressed one and we need to keep in mind we have +2 billion of carryout and if we have a large crop next year we could see a 2.5-3 billion bushel carryout. So there is plenty of risk in the corn market, new crop in particular.
When corn bounces, look for it to be a pricing opportunity. If you are someone who thinks it will keep going up (because of emotions involved in marketing most everyone will feel like the rally will keep going)
This is why now is the time for courage calls for some of you.
The purpose of a courage call is so if we get a weather scare that you are confident enough to make a sale when you should. It helps balance out any fear or greed.
Last year, guys that didn’t have courage calls didn’t make sales like they should have. Guys that did have them made sales and then bought put options and did real well.
Keep in mind when we have a weather scare, you aren’t going to want to market anything because you’re probably going to be impacted.
You want to be in a position to where you take out the emotion of making sales.
If you’re scared to make a sale, then that is the time to be getting puts. If you think you should be selling it but you don’t think you’re going to raise it…. Then buy puts.
If you need help or have questions about these concepts please feel free to give me a call .
Listen to today’s audio where we go over managing your risk and marketing plan, what’s going on in the market, stories the funds could get behind & more
Listen Here: https://txt.so/TTZ5xi | |
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Market audio comments - Have markets finally found bottom?
