Publish date:

Chris Robinson Analysis: Grain Rally Continues Amidst Transport Issues

Chris Robinson reviews the fundamental drivers of the recent rally in grains

In Today's Traders Exclusive, Chris Robinson reviews the recent action in the grains which have rallied substantially off of their lows since the beginning of the month. At the end of September, soybeans were trading at $9.04, and a few days ago nearly hit $10.50. The underlying driver of the rally has been the shortage of railcars, making it a logistical issue and not a supply issue. The USDA is still projecting strong supply. All the grains have risen concurrently, but the longer term trend is still down and a bet against the rally may make sense here. The funds are still heavily long corn, with small positions in wheat and soybeans. If they race to the door at once, it would add to downside pressure. As always, adhere to your risk parameters when placing trades.

TheStreet Recommends