We are watching the price action in the grains this week, since May options expire Friday. We have seen these expiration days mark an extreme in price followed by a reversal in the trend. The EIA (Energy Information Agency) will release their weekly inventory reports on Wednesday morning. Traders will be quick to adjust demand models, which could impact deferred months. Two charts we are watching closely are Ethanol and RBOB. Those contracts have not made new contract lows like the crude oil. If they do, then we will be watching to see how will corn react.
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