Pressure in grains had a big impact on sentiment this week.
The Optimism Index for corn and soybeans showed big drops.
In Corn, the Optix was 44 a week ago and has declined to 26 as of Tuesday. It would need to get closer to 20 to be interesting from a contrarian point of view given its ingrained bear market. Even during the worst markets, a reading below 20 has tended to coincide with exhausted selling pressure. Wheat is there now but the dips below 20 in July didn’t lead to much of a reaction and that’s a worry.
There are still futures trading opportunities in the grain markets to take advantage of current price levels for both investors and commodity futures hedgers (farmers, producers, users, etc.).
For details on utilizing futures, futures options or both in the grain markets, please contact me today.
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