Grains All Limit Up

Corn, soybeans, soybean oil, soybean meal, wheat, and oats all opened limit up today. I have never seen this occur before!

Grains Grope for Bottom

Along with many other financial markets, the grains have been in a downtrend for the past few days. Based upon today's trading, it doesn't appear that the bottom is near. This chart for soybean oil is symbolic for all the grains, including corn, the entire soybean complex, oats, rough rice, and wheat.

From Bryce Knorr of Farm Futures:

Traders return from a long weekend to confront much of the same bearishness they faced last week. Economic pressure around the globe continues to weigh on the grain market, with better weather in South America adding to the negative tone.

Transitioning To Longer-Term Trades

I am in the process of transitioning to longer-term trades. This may permit me to spend more time during the day studying markets and, yes, blogging. I am also considering the possibility of starting a futures brokerage with a fellow futures trader who is an experienced broker. He trades on fundamentals and I trade on technicals, so it could be a complimentary relationship, both for me professionally and our clients.

With longer-term trades, I will be able to take more positions in different commodities and futures, including the softs, oats and rough rice, livestock (meats), interest rate futures (Eurodollars, swaps, fed funds, Euroyen Tibor) etc. This will be a way of not only spending less time trading, but also spreading and diversifying my risk.