David Fuller's view

Corn and wheat purchased

I mentioned again in last night’s Audio that corn (weekly & daily) was steadying from a technically quite oversold position and due for some mean reversion towards its declining 200 day MA.  We became interested in January on the further decline towards $4 and the big key day reversal on the 13^th, marking the low to date.  Today, with slightly in-the-money stops protecting my recent coffee and sugar longs, I bought March corn at 441.4, including spread-bet dealing costs.  I also bought London wheat (weekly & daily), which looked slightly more overextended relative to its 200-day MA than the Chicago contract.  I paid 156 for the May contract, including spread-bet dealing costs.

Seasonally, this is usually a quite period for US and UK/European grains because of winter.  However, during a brief search today I saw that there have been some transport delays from Canada.  Additionally, hot and dry weather is a concern in South America.  Also, with stock markets losing form recently some traders are also looking at other markets.