Commodity chart of the day
Daily Oats
(click to enlarge)
Rarely will I trade oats for clients but I'm always paying attention. The reason being is in the ag complex oats often move first and I find oats can be used as predicator when positioning in other grain products.
In the last two weeks oats have appreciated 17% and coincidence or not an interim low was made in oats before corn, soybeans and wheat. Similar to copper which I hardly ever trade on behalf of clients it is a commodity that I follow to help navigate other markets.
Comparing oats to the main ag commodities I trade in the last two weeks: con is higher by 16%, bottoming twodays after oats, soybeans started another leg higher a few days after oats bottomed but were already appreciating, gaining 14% in the last three weeks and finally wheat bottomed the same day corn did and is higher by 17% in the last two weeks.
I'm advising bullish exposure in the grain complex and would be scaling into longs and have some skin in the game into the month end USDA report.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
