Over the past several weeks, the grain and oilseed market has been in a trading range. While prices have trended higher and lower, the market has not engaged in a breakout either to the upside or the down side. With the planting intentions report set for release by the USDA at the end of March, Jim Bower sees the market staying in this trading range for the next several weeks. “The market seems to want to hold,” he stated. “If you try and sell a put option, the market will not give you much of a premium.”
In his weekly Market Strategy Report, aired on Hoosier Ag today radio stations around the state, Bower said the Federal Reserve action this past week has kept the value of the dollar lower which keeps the U.S. competitive from a currency standpoint and may help to stimulate U.S. grain exports. Bower, however, sees the market becoming more volatile over the next two weeks, “This week will not be as quiet as last week. We are starting to see some field work being done and producers are finalizing production decisions.” He added that the market will begin to pay a lot more attention to weather maps, not only in the Midwest, but in the West where temperatures have been up and moisture short.
Bower sees the biggest negative in the market right now is the large crop and excellent pace of harvest in South America, “They are a major competitor, and we just have to live with that.”
For more information, contact Bower Trading at 1-800-533-8045.
This material has been prepared by a sales or trading employee or agent of Bower Trading Inc and is, or is in the nature of, a solicitation. This material is not a research report prepared by Bower Trading Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Bower Trading Inc believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.