Corn Futures––Corn futures in the December contract are starting the week off on a sour note down $0.08 at 4.01 a bushel as China has devalued their currency substantially as that is a very bearish fundamental factor for corn and the entire grain market which is also lower across the board today.
I have been recommending a bullish position from around the 4.00 level and if you took that trade continue to place the stop loss under the contract low standing at 3.63 as an exit strategy as traders are awaiting the highly-anticipated crop report which will be released on August 12th. The large money managed funds are still long around 111,000 contracts as they have reduced that substantially over the last couple of weeks, but they still believe higher prices are ahead, but it’s all going to be about what that report states on how many acres were planted.
Corn prices are trading below their 20 &100 day moving average and as I have talked about in previous blogs this was a counter-trend recommendation as I think prices have just become to cheap, but I do believe the risk/reward are in your favor. At the present time I also have a bearish wheat and oat recommendation as these commodities can go in opposite directions.
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