Grain Rally Could Be Leveling Out

This is Matt Rice with the Market Line Report for April 21st. Grains trading higher once again, this could be a good place to hedge as patterns and trends show this rally could level out shortly. Let's go to Todd Horwitz for more information on the grains, from the floor of the CME in Chicago.

Horwitz "Wednesday's grain market, what a move we are having here. What a move we are having here and man are their shorts getting squeezed. This is a pure, out and out short covering rally from here. We have commented for weeks and months here, that we love the space and we want to be long in the space and here we're getting it right. What we are really seeing here, and this is what you want to pay attention to, the price action is too parabolic up. You are seeing much heavier volume than normal, which means the shorts are getting squeezed because they don't care about price and time."

Chicago May Wheat rallied once again, up 18, at 504 ¾. May corn ended the day up 10 ¼, at 395 ¼. Portland prices for soft white wheat of 10 ½ % protein for April were unch- to dn 7, ranging from 5-52 to 5-64 ¼. Hard Red Winter wheat with 11 ½ % protein, prices for April up 16 ½, ranging from 5-78 ¼ to 5-83 ¼. DNS wheat with 14 % protein, prices for April were up 12 ¾, ranging from 6-40 ¼ to 6-60 ¼. April Live Cattle closed the day dn $1.02 ½, 126.02 ½. April Feeder cattle dn 77 ½ cents, at 149.25. April class III milk was dn 2 cents, at 13-66.