Corn Futures—Corn futures in the December contract is currently trading higher by 1 cent at 3.75 a bushel in a relatively quiet trade as the volatility recently has come to a crawl as we are experiencing very tight trading ranges.
I will be recommending a bullish position if prices break the 3.77 level on a closing basis only while then placing the stop loss under the contract low standing at the September 9th at 3.52 as the risk would be around $1,250 per contract plus slippage & commission. The United States and Japan finalized a trade agreement yesterday which is bullish the grain market and if we can ever come up with a trade agreement with China prices would move substantially higher.
Corn prices are trading above their 20 day but still below their 100 day as the trend is mixed to higher as I do believe that the risk / reward is in your favor to take a bullish position. At the current time I am also recommending a bullish wheat trade which is up about $0.08 today on optimism about trade.
Harvest has begun and seasonally speaking that generally lowers the volatility as that is exactly what we’re witnessing at this time as estimates are around 13.7 billion bushels being produced in 2019 so look to play this to the upside.
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