How much higher will this lower opening be?

  • Posted on: April 9, 2010

Crop report today. Not a huge surprise. Slightly friendly for corn and old crop beans. Negative world wide carry out with an extra 4 million extra metric tonnes for world wide corn.
Those anticipating a US 2.0 billion plus carry out in the corn were disappointed. Corn carryout was 1.899, just ten million less than the expectations.
Given the world wide carryout, this is overall neutral.
Wheat was a little friendly, with world wide carryout reduced a million metric tonnes.

Initially we were called lower, over the past 2 hours that has morphed into a higher call. How much higher will this lower opening be? I believe this rally will be fueled by shorts who will be running for the exits early.
Overall, the outside markets look higher, which may be supportive for the grains.

I would expect a mixed, choppy trade. For now, the cotton looks bullish, the cattle continue to creep higher. Gold silver and crude oil are slightly higher giving us a friendly tone for this end of week trade.

The old adage, never sell a quiet market applies today. Watch out trying to pick tops today. I think you’re better off looking to buy dips.

Currently, the Dow is 35 points away from 11,000. I look for a settlement above 11,000 today to end the week on a higher note.

Good trading.
Use your stops and don’t be stubborn.