Grains Futures Roll Over Ahead of July Options Expiration

Corn, soybeans, and wheat were all sharply lower in Thursday’s trade. Are there any hopes of a rally?

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That’s Mr. Oliver Sloup, Blue Line futures Oliver bottom numbers there, all of them down, turn my frown upside down, please, I’m, I wish I could do that I was I was thinking we’d be able to hold a little bit better coming back from that midweek intermission that we had, but the selling just kind of feeding on itself across these grain markets. And I’m not sure that there’s really anything in the way of stopping it here in the near term. Now, we do have July options expiration tomorrow, potentially that could play a role in price action. Looking at the July corn options, there was a lot of interest in the 450 strike both puts and calls, we’re going to think that’d be a little bit of a magnet for this week’s trade, which it was on Tuesdays trade, but just really giving it up today. And once we get past July options expiration, then all the attention is to the new crop December contract, if it isn’t already. And that just continues to grind lower as well. And there’s not a whole lot of great news to write about in terms of a relief rally. Where could that come from potentially from short covering ahead of next week’s big quarterly report? That’s historically one with a lot of volatility. So maybe you get some of these funds who have a large net short position covering into that. But outside of that, I don’t see what the catalyst is for a significant relief rally from these levels barring any major major change in the weather forecasts going forward. All right, we’re gonna digest that all and we’re gonna go on break. Thanks for that great content. We’re gonna go away pay some bills. Think about you just had to say come back and talk more of Oliver Sloup, right after this. Right now. taking a beating. Let’s bring in our guest analyst, Mr. Oliver Sloup, Blue Line futures Oliver make sense of it all for us, please. Oh, well, that’s a consolidation trade for the most part and cattle complex. And over the last couple of weeks, we’ve been pretty optimistic on cattle had a big move higher on Friday. And you and I talked about that Monday morning, the lack of follow through and Monday. And Tuesday’s trade certainly raises a little bit of a caution flag where we’ve got plenty of reasons for this market to rally including a much softer corn board, but really unable to find its footing. And that certainly raises some concerns and starts to neutralize some of the bullish optimism and bullish tailwinds. What are those tailwinds? Well, I think there are probably a few things that are maybe keeping the would-be buyers at bay, aka the funds. I think that would include potential bird flu headlines and potential continuation of software economic data that we’ve seen as of late. So I think short term we can consolidate maybe work a little bit higher, but I am starting to grow a little bit more concerned about later in the year at what what could come if we continue to get this soccer economic data. Yeah, you know, I can’t make up my mind whether we’re getting people that want to scare people more with this bird flu or not, you know, because it’s just not going away. Right. It’s not like the Russia Ukraine war that went to the back pages after a while. It seems like once a week or maybe twice a week, I get more and more scare email in my in my inbox, but hey, this is gonna be the real deal. What about vaccines and the likes? And then you write and then you combine that with say, even today, you might have thought that those weren’t really that big of economic numbers, but there were weaker I mean, they all were weaker, and they’re all good. They’re all getting revised lower to the initial read is the best number in the previous month that the cops are all being revised lower shame on you. Shame on you for looking behind the curtain. Oliver, you’re supposed to do that. All right. Thanks for that though. Great stuff as usual. Appreciate it. We’ll see you next week Oliver Sloup. He’s with blue line futures up in Chicago. Bring it back here to Nashville, inanimate