So the most active contracts for corn, soybeans and wheat are all down on the acreage report. Traders will be watching the weather reports to see how these commodities will react as we progress through the growing and harvesting seasons.
What About MOO?
We've been looking at a lot of pick-and-shovel plays around here lately, so the chart I watched most closely yesterday was the Market Vectors Agribusiness ETF [NYSE Arca: MOO], which tracks a wide range of agribusiness. The challenge with MOO, often, is understanding how crop-specific news will hit the companies inside the ETF. Well, yesterday at least, it was pretty clear. MOO lost almost 2% on the day.
But considering how low MOO went this past fall, shaving half a buck off the price on dismal news seems like victory.