Corn Futures––Corn futures in the July contract are trading higher for the 7th consecutive session finishing up 5 cents at 3.94 a bushel and traded as high as 3.99 earlier in the trading session as prices are right near a fresh yearly high.
Prices gapped up on the open due to the very bullish crop progress planting report which showed corn planting at 49% which is a historic low as wet and cold temperatures continue to hamper planting progress. Corn prices have now rallied about 15% over the last week or so as I do believe the farmers will get the crop in the ground as I’m looking at a counter-trend trade as I do believe a short term top is going to be created soon.
At the present time I have bearish recommendations in soybeans and soybean meal as the corn crop will probably have production numbers cut slightly for 2019, however unless a trade agreement with China comes about prices are limited. I am advising farmer clients to take advantage of some of this year $0.60 rally and offset some of their cash crop because once the nice weather comes back into town prices could drop quickly.
One of the main other factors for the spike in price is the fact that the large managed funds were short around 330,000 contracts which was an all-time record while now are approximately down to about 250,000 as it looks to me a short squeeze has been created, however they still believe lower prices are ahead.
TREND: —HIGHER
CHART STRUCTURE: POOR
VOLATILITY: HIGH
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
Skype Address: 5da1f85979b7117b
TWITTER—@seeryfutures
FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER
Email: mseery@seeryfutures.com
If you’re looking to open a Trading Account click on this link www.admis.com
There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.