The grain markets started the week on a positive note. A market strategist tells us what is driving the market this week. He also makes note of opportunities to make sales.
AUDIO: Brian Grossman, Zaner Ag Hedge
Zaner Ag Hedge market strategist Brian Grossman says U.S. Department of Agriculture’s weekly export inspections report, released Monday morning, added support to the corn complex.
“It was another supportive week for corn, (with) 1.5 million metric tonnes getting shipped out the door,” Grossman said. “Soybeans (were) also pretty good, coming in just shy of 900,000 metric tonnes. Both of those came in above what we need on a weekly basis, and (are) working hard to catch up to the USDA target. Corn is slightly ahead of the five-year average, and soybeans (are) getting closer like, but still falling short by about eight-percent.”
Grossman adds soybean futures on Monday welcomed news of China deciding to hold off on tariff threats, to workout an agreement with the United States.
“Soybeans 24-cents higher in July and 23-cents higher in November. We are still trading over the $10 mark. For a lot of producers, that is going to be a profitable area. If you want to make that sale and cover it, you can be looking at different call option strategies to keep you in the game if we do run into some sort of a weather issue or if China steps it up and buys a lot of beans,” Grossman said.
Grossman adds recent support will provide corn and soybean growers many opportunities.
“The corn story is getting more supportive, almost every day. Lot of rain moving through parts of Iowa. A rally in beans is going to take any encouragement away from guys still out there trying to get the corn in the ground. I think the corn story, along with soybeans, could be a good deal for the U.S.,” Grossman said.