New Crop Corn Tests Recent Lows
May 03, 2012
TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
New Crop Corn Tests Recent Lows
December corn came within a penny of the March $5.23 low, however managed to close only down 1 1/2 cents. This could be the beginning of a triple bottom formation but, more likely, as we continue to knock on the door of new lows we could be set to take another leg lower. A close below $5.23 could likely result in follow through down to the psychological $5.00 support, however strong technical support is not found until $4.80.
Nearly ideal planting conditions along with good forecasted weather continue to pressure new crop corn. November Soybeans could have offered support to corn if the $14.00 level had been breached. November beans failed to do this yesterday in dramatic fashion and posted an outside day reversal which could be a sign of a topping formation for soybeans. Without support from an extended soybean rally or weather concerns, the weight of massive planting acreage estimates and record planting pace may be too great for December corn to hold the important $5.23 level.
See December Corn Daily chart:
This means that speculators should be looking for opportunities and producers need to make sure they lock up prices that makes sense for their bottom line. Give me a call for some ideas. In particular, producers looking to hedge all or a portion of their production may be rather interested in some of the strategies that I am currently using.
In my mind there has to be a balance. Neither technical nor fundamental analysis alone is enough to be consistent.
Please give me a call for a trade recommendation, and we can put together a trade strategy tailored to your needs.
Ted Seifried (312) 277-0113 or firstname.lastname@example.org
Please check out my Blog at: http://tedseifriedfutures.com/
Additional charts, studies, and more of my commentary can be found at: http://markethead.com/2.0/free_trial.asp?rid=Seifried
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