Saturday, August 22, 2015

Sell Corn

Corn Futures--- Corn prices traded higher for the 2nd consecutive trading session closing around 3.82 a bushel up another 4 cents as I’m now recommending a short position placing your stop above the 10 day high of 4.01 risking 18 cents or $900 per contract plus slippage and commission as the chart structure is starting to tighten up and will start to improve on a daily basis starting next week as prices have now rallied $.25 since last Wednesdays low of 3.57 as the commodity markets still look very weak in my opinion.

Corn prices in my opinion are overpriced due to the fact that we will have another tremendous crop here in the Midwestern part of the  United States as I think the last week was just a kickback as prices  filled the gap around $4.00 in last Monday’s trade as I think prices are headed lower with many of the commodity markets including crude oil and sugar prices, so continue to play this to the downside taking advantage of rallies as the chart structure and the monetary risk will be lowered here in the next couple of days.

This summer has flown by as usual but I see no reason to own grains or any other commodity at the current time especially due to the fact that Brazil is going to produce another record crop in corn and soybeans so maintain the proper stop loss while maintaining the proper risk management of 2% of your account balance on any given trade as I’ve not been in the corn market for a couple of months but at this point I think a downturn is coming upon us especially with harvest around the corner. TREND: LOWER –CHART STRUCTURE: IMPROVING

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