Has the corn market found a bottom? I dont think so!
I'm looking to sell march corn around $1.99 with a possible target of $1.74Would use a stop at $2.06 or $2.10 depending on your risk tolerance, or for the safe play a march $2.00 put for 4 or 5 cents, only problem with the put is it may not have enough time.
With several closes under the pivotal $2.00 area, demand running behind (at the current pace could push ending stocks to over 2 billion bushels), the cheap dollar does not seem to be helping in the sales department and the dollar really starting to look like its putting in a low, possible increase in corn acres due to rust, all added up makes me believe that we have a very good probability of testing the august 2000 low of $1.74
But what about the record fund short position of over 100,000 contracts???? I hear about this everyday. Think about this...... funds are short over 100,000 contracts, farmers grew and are holding onto a big chunk of over 11 billion!!! You figure out how many contracts the farmer is long! Farmer is famous for selling out on the bottom and from what I see and hear the farmer has not been doing much selling because "price have to go up" :)
For more information on this or other trades please give me a call or send me an email.
Jason Godfrey
Iowa Futures Corp
888-777-1442
jason@iowafutures.com
Located between the piles of corn in Marshalltown, Iowa
YOU MUST ALWAYS BE AWARE THAT THERE IS SIGNIFICANT RISK INVOLVED IN TRADING FUTURES AND/OR OPTIONS ON FUTURES AND ARE NOT SUITABLE FOR ALL INVESTORS.
posted by JasonGodfrey @ 2:34 PM
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