Prospective Planting , Weak Shorts
Monday, March 27, 2023 at 5:05:31 p.m. UTC
Money Making Mondays
Top 3 – Things to Watch this week:
1. USDA Prospective Planting Report. This is a pretty big deal. It will give the first USDA indication of potential production for next year. The market can get really excited during this report.
2. The main focus now is weather forecasts in the U.S. April is just around the corner and the market will start reacting to anything weather related. As of March 23, the middle of the USA is still in drought conditions. This area is where a lot of winter wheat is grown. Dormancy has broken in Texas and will continue to move north in the coming weeks. This crop went into dormancy poor which means they need a good shot of rain in the next 3 weeks.
3. Managed Money is lifting some of their shorts. The recent push down was probably taking out all the weak shorts and the market is currently recalibrating. Still not a bull market.
This week’s Action Item:
The market has not turned Bullish, so this is a good time to get your targets in place and get caught up on all old crop sales. Especially, barley.
Chart:
US Drought Monitor is suggesting it is dry in the middle of the USA.
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