Falling Back on the Technicals
2020 has already been a wild year for commodities, between the China trade deal, passing of the USMCA, and now the global threat of coronavirus. What do you do in times like this where the fundamental information is so volatile and difficult to interpret? You fall back on the technicals, says Scott Shellady.
Shellady..”Everybody kind of runs to something to give them some perspective, or at least something to get their hands onto. Because right now the fundamental stuff out there is kind of crazy and fundamentally you can kind of get lost in the wash here. So let's take a look at what the technicians are seeing, and that might also help give us a clue.
Now, in times like these that's where a lot of guys run to to kind of get a grasp, a hold on, things that are a little bit more comfortable rather than trying to figure out, are we trading facts? Are we trading feelings? They're just pure facts. So keep an eye on those things that should give you some good stead going forward in the short term and in times of volatility is here right now. We'll see if we can get through this, I think it kind of get back to some sort of normalcy.”
In markets yesterday:
Chicago March Wheat futures closed down $0.02 ½ yesterday to $5.69 ½.
Portland prices a bit firmer. Soft white wheat of ordinary protein up $0.05 and Club Wheat of Ordinary Protein up $0.10.
Live Cattle futures were down just $0.10 to $122.15 on the February board. March Feeder Cattle back up a bit after yestedays drop, up $.22 ½ to $135.40.
Class III milk up $0.06 to $17.39.