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| Markets disappoint as corn and wheat close off their highs and corn makes yet another low while soybeans look to test their lows from Friday’s USDA despite the record crush yesterday.
Overall we are just seeing a lot of technical and fund selling. As the funds and China just don’t want to buy our grains.
There isn’t a story that the funds can get behind to cause them to want to cover their shorts or a reason for China to want to come in and buy today.
The crush deal is supportive long term as we will continue to crush more and more beans as is Brazil.
The funds are holding some of the biggest short positions on record. It’s disappointing when that’s one of the biggest things we have going for us. Because at one point they will have to cover. The funds have a tendency to get long at the top and short at the bottom.
How much farther do we have to fall and when will they actually find a reason to cover remains the biggest question.
The good news is that if China starts to come in here and buy, that would be one reason for the funds to want to cover.
Everyday I have someone call and ask me:
“Are we done going down”?
The truth is absolutely nobody knows. We can take into consideration all of the factors in the market, and we can watch for signals that will give us a good clue that the blood bath is over…
But at the end of the day the goal is to get your operation in a place where it doesn’t really matter what direction they go because you have things set up to where you remain as profitable as possible no matter if we rally to the moon or continue to fall. Become comfortable.
Listen to today’s audio where we go over different marketing tactics different situations should be using in this bear market, capturing carry if you need to make sales, utilizing the bid structures your elevator is using, and how to find a trigger and marketing plan to make sales that’s specific to your operation
Listen Here: https://txt.so/lyjGPo
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