Grains Journal

I just bought a KC wheat at 500, covered all my oats at 196 and I am going to hold my corn through the weekend. I think the big funds are not done pushing these prices up, hopefully they will take some of their metal money and plow into agriculture.

 

Wow! We certainly have total opposite positions and viewpoints here. That's what makes a market.

 

I have a feeling I'm going to get my ass kicked in corn on monday due to the crop progress report. Its only contract so I can handle the heat. I will hold it untill the next WASDE report in June.

 

Nice downside in overnight trading last night. Oats down, beans down, wheat down-- I am short all three. Corn down too--hope JW is able to cut losses .

 

I bought corn a couple weeks ago so I still have a lot room before I make a loss. And my wheat is up 9 cents. I hope B1S1 is able to cut his losses in wheat.
I am not very bullish on soybeans or oats in the short term and will short these grains if I need to hedge myself. I am more confident about the wheat then the corn near term. It has been very hot in Texas with very little rain. It is possible we will hit a 25 year low in KC wheat ending stocks this year. Corn will probably go down in the near term due to good planting report but long term as long as demand stays up corn should stay firm at worst. I am very worried about the corrections in the metals and energy because it could spill over into the grain pits.

 

I will be looking for a place to add some additional short wheat positions. As before I ended up being a little early on the Wheat trade, but I am still at breakeven at the moment. Corn seems to have bounced back a bit, although I would look for downside and then a bounce to beginning July.

 

B1S1, can you recommend I cut my losses again tomorrow before the market opens, maybe I can catch another 20 cent move.

 

Sure--what I meant was in corn--I had not remembered you were in wheat.

 

I am currently looking into shorting a soybean meal contract as a hedge against my corn and wheat positions. I have never really studied the soybean complex, but I guess this would be a good time start. From the research I have done so far it looks like there are a tons of soybeans floating around and the price should be closer to 5 than 6.

 

I am continuing to look for a further wheat short. I am down about 8 cents right now on one unit. If I get a good signal, I may short 2 more contracts. In the meantime, I am just waiting. No stop in for now.