The USDA Hit the Brakes. Will the Funds Hit the Exits?

The latest USDA report knocked the legs out from under the bullish grain story, but the funds are still holding substantial long positions. How long can they hang on, and what happens if they head for the exits?

Jon Prischmann and Ryan Tungseth discuss why a bearish short-term outlook can still leave room for longer-term opportunity, and how hedging strategies need to adapt. They break down what basis and spreads could reveal about actual corn supplies, why better-than-expected soybean yields warrant caution, and how to weigh storage costs against the potential for a better return. Plus, a look at South American weather and why a better cattle market structure makes this a useful time to revisit protection.

You can disagree with the USDA. You still need a plan for the market in front of you.

This discussion is for educational purposes only and is not trading advice. Trading futures and options involves substantial risk of loss.