Grain market relatively quiet this week
The grain market this week was relatively quiet compared to weeks past, with high volatility in soybeans in the March contract settled last Friday at 14.30 level…up about $.08 for the trading week – still trading above its 20 day moving average but below its 100 day moving average. There is no trend in sight as investors and traders are keeping an eye on South American weather, which at this point is relatively decent while we’re going into the critical growing season in the next 3 to 4 weeks.
Corn futures were slightly lower this Friday afternoon, down about $.03 for the trading week…above their 20 day moving average but below their 100 day moving average. In my opinion, I believe the grain market has bottomed but I believe you will see some choppiness in weeks ahead.
Wheat futures in the March contract are breaking a three-day slump, up $.08 today right at its 20 day moving average…far below its 100 day moving averages – which stands at 8.50, down only about $.04 for the trading week really with very little fundamental news to dictate prices.
I like to follow the trend, and right now the trend in the grains is pretty neutral. I would like to see if further consolidation of prices will a possible 8-10 week consolidation, and then look to get into this market. But at this point is markets are relatively choppy and if you trade choppy markets you get chopped up, meaning generally you lose. When you trade a trendy market, you do much better because if you look at some of these trends like the yen…which goes down every single day, and the stock market…which goes up every single day – rewarding trend followers…those are the kind of markets you want to focus on.
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