Market Commentary

Crude Oil Futures – Tuesday Technicals

| Market Commentary

Although we would have like to have seen the wave 2 pullback take Crude Oil Futures prices up to the $64.50-area, near the 62% retracement and up against the upper boundary of the price channel on the hourly chart, all the pieces are in place for the long-term bear trend re-establish itself in violent fashion over the next few weeks.

The Role of The US Dollar Index on the Grain Complex

| Market Commentary

As commodity buyers, it is important to keep an eye on the price of the U.S. Dollar.  This is because “usually” there is a strong inverse correlation between the U.S. dollar and the price of commodities.  Logically, if the U.S. dollar is strong, it makes commodities priced in U.S. dollars more expensive relative to competing products worldwide.  Conversely, a weak dollar makes U.S. commodities more attractive and in demand.

Tuesday Technicals – Soybean Meal – 2-20-2019

, | Market Commentary

We see Soybean Meal prices trending lower in the near future.  This will most likely be accompanied by stories of ASF in China depleting Soybean Meal demand and food price deflation.  That will make it very difficult for a buyer to want to extend coverage or make any forward purchases.  However, given the our wave count suggesting that this new low will be an intermediate-term, bottom and the fact that prices are in the very low part of the 5-7 year range, this will be the time when the buyer needs to become aggressive.   Probability will be in his/her favor and when the trend does change higher, it may be too late.