Grain Shake-Out!

All the grains have sold off heavily this morning. I have felt for some time that the parabolic rise in grain prices have been overdone. Often, when prices rise to far, too fast, they are subject to some very sharp corrections. I believe this will be good for the grain markets, and am still bullish for the medium to long term. This is a much-needed correction that will provide opportunity to take new positions. It may be as short-lived as lasting only for minutes or an hour or two, or it may last for several days. In 2004, and very sharp sell-off in grains occurred shortly prior to the spring planting season in the Norther Hemisphere. It lasted several days, and was extremely sharp in nature. That chart is posted on my other blog (see the link at the right side of this page). This chart shows both the 3-minute and tick charts for soybeans.