r e l a t i v e // strength

whipsawing continues in the grains

The weather market that is currently upon us continues to jerk corn around. Any dry forecast causes premium to be re-factored into the market. If the 10-day forecast looks dry and hot, then we could see December corn back into the high 270s or low 280s... possibly much higher. No one really knows because at this point it's all about mother nature and how much fear she can strike into the hearts of traders.

Any rally in the grain pits should be watched closely when trading livestock. If the market thinks dry then the cattle market may die. We've seen some pretty high levels in feeders lately that just don't have the "feel" of lasting terribly long.

posted by jared @ 4:32 AM