Tag: corn futures
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A Break Lower in Ags
Four out of the last five days corn futures have lost ground giving up nearly 40 cents after failing at their highs near $5.20/bushel in the July contract. Today the 50 day MA (blue line) was breached for the first time since late January. Future settled just below their 38.2% Fibonacci level . Though the…
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Corn/Soybean Ratio Spread
Relative (ratio spread) trades can work if one commodity moves in the proper direction big and the other does not move at all, both underlying commodities move in the correct direction small but consider this two separate trades and the misconception that spread trades are less risky than an outright is flawed in my eyes.…
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Corn Farmers are in the Fields, where to from here?
New crop corn futures are off 15% YTD and prices are 23% below their September 7th highs. I do not like picking bottoms, but… I think we are close enough to wade into bullish trade. December 13’ futures traded within 3 cents of contract lows overnight. The latest decline comes from the planting progress farmers…
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Corn Crops; When are Delays a good thing?
New crop corn is slow to get in the ground this year. That could mean higher prices, in my eyes. US corn planting is only at 4% according to this week’s crop progress report. This came in at the low end of expectations of 4-6%. It gets worse – the average planting progress from this…
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“February Break” in the Grains May Be Ending
March corn futures at the Chicago Board of Trade have seen prices rebound from the early-February low of $3.47 1/2 a bushel. While the bulls have more work to do to suggest a price uptrend can be sustained, there are early technical and seasonal clues that a market low is in place. The Moving Average…
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Corn Pops; Bulls Now Need to Show Follow-Through Strength
May corn futures at the Chicago Board of Trade on Tuesday hit a fresh two-month high of $4.06 a bushel. Tuesday’s price action also re-established a four-week-old uptrend line on the daily bar chart. The corn market bulls have gained fresh upside near-term technical momentum with Tuesday’s strong upside price action. Now, it will be…
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Corn in Middle of Well-Defined Trading Range
December corn futures saw a rally during the first half of October that pushed prices well up from what is now strong technical support at the early-October low of $3.35 a bushel. However, prices have backed off just recently and are now right in the middle of a well-defined trading range between $3.35 and strong…
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Corn Futures Trade
Corn has been the focus of many stories this year not the least of which has been the ethanol story. While we feel the ethanol side of the story is overblown, we do feel that the weather story is under appreciated. All the wild swings in weather, from too wet to too hot etc., should…
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July Corn Still Trapped in Well-Defined Trading Range
July corn futures are still trapped in a well-defined trading range between the May high of $3.96 1/2 and the May low of $3.54. Swing traders have had success the past few weeks by getting long at the bottom of the trading range and by getting short at the top of the range. The direction…
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Corn Trade Recommendation
Corn has been one of the best performing grain markets in 2006 and now 2007 has started with a bang. After last weeks bullish crop report we are seeing corn trade above $4.00 per bushel for the first time since 1996. Much of the new demand is coming from ethanol, but harsh weather conditions are…