Opportunities in the Grains Heading into Thursday’s USDA Report

Chris Robinson talks about the USDA Report due out on Thursday and the Funds.
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In today’s Trader’s Exclusive, Chris Robinson reviews the recent trading activity in the grains and what to look for over the next few days. Corn, wheat, and soybeans are all at 4-year lows and searching for a bottom. Yield reports have been extremely high, with corn as high as 200 bushels. In the past 120 was thought of as a high number. Soybeans are coming in at 70-90, compared to past figures of 40-50 at the high end of the range. As far as the funds are concerned, they are still long corn, which has been paired down significantly from about 250,000 contracts in the beginning of the summer to about 60,000 right now. The funds are also short about 50,000 contracts of Chicago wheat, and short 20,000 contracts of soybeans. . The USDA report will be released on Thursday at 11 AM, and since we are at such low levels it is important to be prepared for a possible rally even on bad newx. Robinson recommends using short-dated options for traders who want to play the data release on Thursday.