Wheat Surges Higher

Our Shubie Partners AG Growth Fund saw a nice run in Wheat today.
As shown on the hourly Wheat (May 2019) chart above, Wheat surged 28.50 cents or 6.65%. As the Ag markets await news on a China trade deal, the only apparent reason for this move was a lack of bad news. Additionally, no doubt there was some fund short covering here as well, as the Wheat market has fallen a full cent over just the past month due to pressure from short selling.

Crude Oil Shows Strength

Coming off of last week’s two day OPEC + Russia meeting where the decision was to pull 1.2 million barrels of oil daily from the markets, Light Sweet Crude has begun to show strength.  The proof of this agreement will however ‘be in the pudding’, as we wait to see if each of the parties involved, uphold their end of the agreement.

Over the past couple of weeks, Crude has tested the $50 level but failed to close below it.  Therefore from a trading standpoint we are looking for a breakdown below $50 or a meaningful push above the $55 level.

S&P Remains Weak

Given the magnitude of last week’s decline and the lack of follow-through in the recovery on Friday, there is potential for further market decline.  With this in-mind we will be watching downward momentum early in the trading session, to gauge the potential for further profitable trades from this market correction.

We Remain Long November Crude

This week the EIA (Energy Information Administration) reported 1.9 million barrels were added to supply which surprised the market who expected a draw-down in  supply.  Despite this, we remain Long November Crude as our expectations are that prices will continue their upward march, as the  Iranian sanctions soon take effect.