Is Corn Going Higher

Corn Futures--- Corn futures in the March contract finished up $.06 closing right around $4 a bushel as traders are awaiting Mondays critical USDA crop report at 11 o’clock CT showing supply/demand tables as well as production numbers for the year 2014 as I have been recommending a short position in corn right around this price while placing your stop loss above 4.17 risking $850 per contract plus slippage and commission. Many of the commodity markets are heading lower due to the fact that the U.S dollar hit a 9 year high this week and crude oil prices continue to plunge and I have a hard time believing that corn has sustainability up at these levels as I’m sticking my neck out on this trade once again as I do believe the risk/reward is in your favor and I also do believe that South America will produce an excellent crop despite what recent weather reports are suggesting.
Corn prices have had a remarkable rally from the early October lows around 3.20 a bushel all way up almost to 4.20 a bushel up 30% and I believe prices have topped out as if you look at the relationship between ethanol prices and crude oil prices its way out of whack in my opinion as crude prices are sharply lower while corn prices are still relatively high in comparison so I remain bearish, however if we are stopped out at 4.17 on Mondays report its time to move on and look for a better market to trade as you always must have risk parameters at hand. TREND: MIXED –CHART STRUCTURE: EXCELLENT 

Please share this article