Play Turner’s Take Podcast Episode 232

If you are having trouble listening to the podcast, please click here for Turner’s Take Podcast episodes!

New Podcast

New podcast is out and it looks like we think soybean oil is heating up.  Energy markets are starting to grind higher and June delivery was orderly (unlike May).  Wheat is rallying but corn can barely get off the mats. If you want to know what we are following and trading, then make sure you take a listen to this week’s Turner’s Take Podcast!

If you are not a subscriber to Turner’s Take Newsletter then text the message TURNER to number 33-777 to try it out for free!  You may also click here to register for Turner’s Take.

Soybean Oil

Vegetable oil has be strong around the world and it is soybean oil leading beans and meal.  With economies (and restaurants) opening again vegetable oil demand is growing.  The four major vegetable oils are palm, rapeseed (canola in Canada), soy, and sunflower oil.  Those four make up at lest 80% of the vegetable oil on the global export market.  These oil stocks are projected to be at their lowest since 2016.

Soybean oil is projected to be tighter too because the industry rarely crushes soybeans for oil.  They crush soybeans for meal.  Meal is much more perishable while oil can be stored for years.  Until meal demand picks up we expect a continued tightness in soybean oil and global vegetable oil stocks.  Wheat has been rallying in part to the dryness in the EU/Black Sea.  This is also an issue for EU rapeseed.

Below is a chart of July Soybean Oil.  I like buying the futures.  I also like buying an out of the money call and selling a put.  Margins are generally under $900 for soybean oil which is relatively cheap these days.  This could be a nice play as the global economy opens back up.  Clients can email me at [email protected] or call 312-706-7610 for trading strategies

If you are interested in working with Craig Turner for hedging and marketing, then click here to open an account.  If you are a speculative or online trader then please click here. 

July Soybean Oil

SRW Wheat 

SRW (Chicago) wheat bottomed yesterday and took off today.  Two things have happened over the past two trading days

* Tuesday – Rumors of Chinese interest in US Wheat

* Wednesday (today) – Rumors of Russia lowering their new crop production and speculation of new crop export quotas

I have not been able to confirm either rumor.  However, EU/Black Sea weather is a real concern and lower production is likely. The first resistance point for July SRW Wheat is $5.25 and then around $5.50.  SRW wheat trades in a mini contract (1000 bushels), standard contract (5000 bushels), and I like buying a call and selling a put with this one too.  Usually the big spring/summer rally is in corn or soybeans, but this year it could be wheat.  Clients can email me at [email protected] or call 312-706-7610 for trading strategies.

If you are not a subscriber to Turner’s Take Newsletter then text the message TURNER to number 33-777 to try it out for free!  You may also click here to register for Turner’s Take.

July SRW (Chicago) Wheat

Energy 

I still like crude and we prefer the back months.  Specifically I like Dec futures,