Karpel’s Corner: Watch for some volatility in Grains, $JJG

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

As I was driving in farm country this week, the rows of corn and beans reminded me that the crop reports are due out at the tail end of this week, which historically has lead to some volatile trade in July.

I watch commodities like Corn ($CORN), Wheat, and Soybeans, as their performance will impact the farmers’ decisions to buy newer equipment, i.e. tractors and other industrial products. Companies like Deere ($DE) & Potash ($POT) will start to move as we get closer to the reports on the progress of the crops this season.

Now implied volatility in these stocks is still low, so not a big expectation of any violent moves. But with the crop reports due out at the end of the month, we could see that potentially change. Looking for set ups in these sectors of Ag and Ag Industrial products. Stay tuned.

See you next time at the Corner!