Today was a very bullish number for the grains. Especially the beans and corn. I am not going to pull punches. I am glad that my spec’s were only puts.
Yes we gave up value in those puts. They will most likely expire worthless. However, I would continue to use them in front of numbers. Precisely because they limit your risk to a known factor.
Corn and beans were limit bid early in the morning, but came off late in the afternoon.
These are historical prices, and it looks like today’s report set the stage for higher prices over the next four months.
In fact, I would anticipate a bullish tenor up to the March 31st planting intentions market.
In this environment, you need to buy dips and sell rallies.
Its shaping up to be a historical year. Not since 1988 has the stage been more perfectly set for major new highs.
Any weather mis steps, and we will be off to the races. Can you say 20 dollar beans?
That is all.
CER
