Ag Insights: June Acreage Report
It’s that time of year where it’s a month long superbowl for grain traders. Increased volatility on the back of ever changing forecasts certainly keeps things interesting. We’ve also got a BIG USDA report next week. Here’s a link to the most recent CME Group video I did:
Unusually dry weather in the U.S. Corn Belt region and the upcoming USDA acreage report have added uncertainty to the grain market, with the corn and soybean CVOL indexes rising to their highest level since last July. Oliver Sloup with Blue Line Futures explains.
New crop weekly options are a great tool for traders and hedgers to consider using during this volatile growing season. The reduced time frames can not only lower option premiums but also help manage risk around high impact events. With this month’s acreage report falling on a Friday (June 30th), market participants could look to New Crop week 5 options to help manage risk or gain exposure ahead of the report. Historically this report has been known to produce some big daily price swings. Over the last 5 years on report day, we’ve seen corn average a 7% trading range and soybeans 4%.
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