Grain Commentary 6-4-15

Grains finished higher on Thursday without a clear, market-driving headline behind the move. The weakness in the Dollar contract was likely a major catalyst. Also, the market has been coming off of an oversold situation which means many of these buy orders could be for technical reasons.

We maintain that now is a good time to be purchasing call options against previous hedges. There are a number of reasons we believe the market may have found a level of support. Many analysts have started to get bearish, old crop corn is starting to move, the dollar has started its fall from the highs, and higher end federal crop insurance policies could be close to paying out a revenue claim at normal yields.

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