Be advised that all my comments are my OPINION and that OPINION is based on my long term in-house model that I dubbed LAWG 647. The prices I use in my model are week ending prices, usually Friday.BTW, trading commodities is risky and not meant for those that faint at the sight of blood.
July 6, 2020
BAZINGA! CORN AND SOYBEAN MEAL TURN BULLISH
We discussed the likelihood of a trend change in December Corn in our last commentary of July 1, and the in November Soybeans, and December Meal of June 15. Bazinga here we are, according to the Model all three are in an uptrend.
So what does the Model tell us now?
December Corn is in an uptrend. It needs a close at or below $3.26 on Friday July 10 to reverse to bearish. The RSI is at 60 as of Friday’s close. The model tells us that both the Positive and Negative Indicators are within the first standard deviation of the long term average. That tells us that there is potentially a good bit upward movement left in the market. Looking ahead for the next several weeks without a significant negative fundamental factor Corn will have a difficult time reversing the trend to lower.
What to do?
Consider getting long December Corn at $3.52
December Soybean Meal
December Soybean Meal is in an uptrend. It needs a close at or below $286.20 on Friday July 10 to reverse to bearish. The RSI was at 66 as of Friday’s close. The model tells us that both the Positive and Negative Indicators are within the first standard deviation of the long term average. That tells us that there is potentially a good bit upward movement left in the market. Looking ahead for the next several weeks without a significant negative fundamental factor December Soybean Meal will have a difficult time reversing the trend to lower.
What to do?
Consider getting long December Soybean Meal at $303.00
As a Bonus….November Soybeans
November Soybeans went into an uptrend on June 12. It needs a close at or below $8.49 ¾ on Friday July 10 to reverse to bearish. The RSI is at 67 as of Friday’s close. The model tells us that the Positive Indicator is slightly above the first standard deviation of the long term average. That tells us that upside energy may be starting to develop. Looking ahead for the next several weeks without a significant negative fundamental factor Corn will have a difficult time reversing the trend to lower.
What to do?
Consider getting long November Soybeans at $8.98
If you are interested in our trading ideas give us a call or drop me an email.
Lee Gaus is a founding partner of EFG Group founded in 1992 which specializes in servicing Introducing Brokers. Prior to founding EFG Group Lee Gaus, Tom Fritz and Steve Erdman all began their Commodity Futures careers with ADM. Collectively Lee, Tom and Steve have over one hundred years of experience in the industry.
International Futures Group (IFG) founded in 1994 is a sister company to EFG Group specializes in serving institutions, professional traders and individual investors.
We believe our experience and the development of the Model provide our clients, Introducing Brokers and individual clients a unique perspective. If commodity trading is what you do drop me a line atvLee@efggrp.comvor give me a call at 312-384-1166, or 1-877-304-1369. We will be glad you called and are confident so will you.