Chris Robinson Commodities Preview in Front of key USDA Report

From the floor of the CME group Chris Robinson, Traders Exclusive Contributor discusses what to look out for in the grain market. Investors should be ready for the USDA report on Monday, June 30 at 11am. Robinson says the USDA report will be a market mover that should not be taken lightly. He suggests that investors look at the recent activity in wheat and beans if they are looking for a trade to put on. Wheat has dropped $1.74 in the past 6 weeks, which may mean it is oversold. Through May there was a rally off of January lows, but there has been a recent correction. Robinson says the three things that will move the markets are mother nature, the upcoming USDA report and the funds. If the funds short corn and beans then the trades will be risky. Robinson uses the July/November bean spread as a spec. The high end was $2.77, on friday they were traded at $1.80 and in July there is an expected 6 month low at $1.75. Robinson says trading at this level can be a lucrative, but dangerous trade and suggests keeping an eye on the levels.