The Soy complex continues to work higher. The November contract traded as high as 1017 today. The target I have spoken of is 1015-1020. We have yet to reach the 1020 on this recent rally. Tomorrow may be the day. Anyway, I have said it is time to use this rally to make sales for new crop beans. It is possible to trade higher given the forecasts. However, lock in some sure money at or near these levels. Any change in the forecast in Argentina and this rally will end quickly. In addition take a look at nov 2019, also trading above 10.00. It is my belief these prices will look rich come spring time.
The corn continues to grind higher. The lows are in and the market can continue to work its way higher. The dec contract traded to 394 today. My target there is 396-402. A 4.00 board needs to be rewarded with sales. The funds remain very short corn. At some point they may be forced out. This will help contribute to the rally to 4.00. Tonight is the President’s address to the nation. Participants will be watching for any insights into how the NAFTA re-negotiations are going. This may have some short term effect on the markets.
Be Well,
John Walsh
800-993-5449
jwalsh@walshtrading.com