Oat futures in the May contract are currently trading lower by 3 cents at 2.68 a bushel as I had been originally recommending a bullish position in the March contract rolling over into the May around the 2.73 level & if you took the trade the stop loss remains at 2.63 which was last week’s low as the chart structure is outstanding at the present time.
The grain market across the board is higher as soybeans and soybean meal remain the leader as the drought in Argentina is starting to accelerate pushing prices higher, but oat prices are slightly lower to begin the trading session.
Oat prices are still trading above their 20 and 100-day moving average as the trend remains higher, but for the bullish momentum to continue we have to break the critical 2.80 level in my opinion so stay long and place the proper stop loss as I still think higher prices are ahead.
At the present time I’m also recommending bullish positions in wheat & corn which are slightly higher in today’s trade as the grain market and most agricultural sectors have started to climb in 2018 as demand is finally coming back to these depressed markets as we will now keep a close eye on spring planting which is right around the corner.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
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