Looking at the nearterm forecast for the central part of the US I see a major storm system moving across the country extending from N. TX straight through to ND. This will cripple any weekend harvest farmers were hoping for pointing to a small pop in the market heading into the weekend. Looking a bit deferred we see a completely clear forecast through Nov 7th once this system moves through. This is a two sided coin. The market should have a small upside bias heading into the weekend, helped by macros, but smart traders are going to look to sell into the pop tomorrow near the close looking for a break early next week…if the forecast holds. Selling volatility up here looks like a great option but it can and will bite back if rain continues to fall.

This entry was posted on Thursday, October 29th, 2009 at 9:19 am and is filed under Grains. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.