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Grain Strategies for 2013

By December 30, 2012

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The new year should offer many trading opportunities for the grain commodities.  The main issues right now are the crops in South America and exports.

South America is expected to produce large crops of especially soybeans .  These supplies will come on line in the first couple months of 2013 and that could put pressure on the U.S. soybean export market.

Weather will be a main issue again in 2013, which will determine the size of the new crop.  We are in almost the same situation as the beginning of 2012.  Favorable weather could produce very large crops this coming season and poor weather could lead to a similar situation as 2012.

There will certainly be opportunities for one grain to perform better than another.  That should make spread trading favorable in 2013.  Tight supply situations or over suppy situations in markets should cause nice moves in the grain markets in 2013.

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