The 2016 Grains Outlook is back with an update!
This guide now includes an update which follows up on the March 31 USDA Grain Stock Report and Planting Intentions report.
Insight into the 2016 grains market is here. The first major crop reports of the year, USDA Supply/Demand and Quarterly Grain Stocks, are considered bullish against market expectations. These bullish reports are likely to set the tone for traders in the coming weeks. The prevailing trend in the grain markets has been down due to large supplies and tepid demand. However, now that this report is in the rear view mirror, fund traders may begin to trim their massive short positions down. The grain markets have been reluctant to move lower recently in spite of U.S. dollar strength and outside market weakness—especially in the energy sector. So, a bullish surprise in both soybean and corn production, coupled with some positive technical action leaves these markets vulnerable to a short covering rally. Traders may also begin to build some weather premium into the price ahead of the planting season. Perhaps the lows are in for the grain markets.