Grain Prices Jump- More Gains To Come?

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• Hi, My name is Justin and Im with Commodity
  Trading Research, today were reviewing our
  recently published article

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• Grain Prices Jump- More Gains To Come?

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• Grain Prices Rally- Still Room To Profit?

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• What a month for grain prices
• Corn, wheat, and soybeans have all experienced
  strong rallies the past few weeks. Corn is up a
  whopping 21.9 in the past month, while wheat and
  soybeans are up 14.2 and 9.5 respectively.

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• Take a look

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• Whats sending these commodities higher?
• Mother Nature is providing too much of a good
  thing

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• Parts of Midwestern US have received copious
  rainfall the past few weeks. While rain is
  generally welcomed by farmers, too much of it is
  a bad thing. Its so wet in parts of Indiana,
  Illinois, Missouri, and Ohio that many corn and
  soybean fields arenow inundated.

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• According to a recent United States Department of
  Agriculture (USDA) crop progress report, a larger
  than expected percentage of corn crops are in
  poor condition due to flooded fields.

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• Whats more, soybean plantings are behind
  schedule as compared to 2014. As of July 5th,
  2015 96 of the US soybean crop was planted.
  Last year at this time 100 of the soybean crop
  was already in the ground.

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• The excess rain has investors worried corn and
  soybean yields wont come in nearly as high as
  previously forecast by the USDA.
• This weather uncertainty is precisely why grain
  prices are on the upswing.

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• Now the question every grain investor is asking
  is- Does this rally have more room to run?
• Heres the deal

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• The sharp late June early July rally is likely
  due to rampant short covering instead of new
  buyers coming into the market. You see, grains
  were heavily shorted earlier in the year as
  traders bet on an ample grain inventories in the
  2015 crop year.

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• With that outcome now in question, bearish
  investors are begrudgingly throwing in the towel.
• So, just how much upside is left in grains?

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• Heres my take
• In last Fridays monthly crop production report
  the USDA said it expects 13.53 billion bushels of
  corn to be produced by US farmers this season.
  Thats down from the 13.63 billion bushels the
  government agency expected in June.

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• And while the USDA left corn yield estimates the
  same at 166.8 bushels/acre, most analysts expect
  a slightly reduced yield estimate in next months
  report. The same goes for soybeans.

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Clearly, theres a bullish thesis for additional
upside in corn and soybeans However,Im wary of
getting long grains at current levels.
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With grains recent gains coming primarily
fromaggressive short covering, further upside
will likely be much harder to come by. In fact,
I suspect any additional rallies in corn and
soybeans will berather mild compared to the
advance of the past few weeks.
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