Grain Markets Showing Strength

March Soybeans have had a great start to the year after seeing a bottom after basically a whole year of falling prices in 2024. In January of 2024 just starting out the new year, prices fell below the 200-day moving average and have not been able to trade above that mark with conviction since. Since the bottom in mid December, prices have climbed back up toward this 200-day moving average and are now re-testing those levels. Significant market drivers could be potential tariffs, volatile climate in South America, and from the prospective planting report that is released in March.

Looking historically at grain reports shows traders that March offers great volatility as there is both the Prospective Planting report and a WASDE report that can drive the price one way or another. With January offering great volatility historically offering 3 different reports regarding the grains, March gives traders the next highest range driving interest in the grain products, and with Micro grain contracts being released, traders have their choice of size. With the standard Corn, Soybean and Wheat contracts being sized at 5,000 bushels per contract, the micro contracts come in at 1/10th the size at 500 bushels per contract, which would have a lower barrier to entry and give a different level of scalability to traders.

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