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 13th, 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.Back to top