Options Expiration Friday
Apr 20, 2012
Grain futures are continuing their wild ride in today's session. Corn is down 5-9c, soybeans up 1-11c, wheat down 5-8c.
Corn futures are under pressure due to fast planting progress and excellent weather. New and Old crop spreads are continuing their down move with the July/Dec corn spread down 3c at -67.4. It will be important to see if July corn holds the $6.00 support level.
Wheat futures are also down today due to large harvest ahead. It's really easy to make a bearish case, just look at a wheat field. There are scattered reports of disease and other problems, but they are few and far between at this point. The biggest bull factor would be wheat's feed value verses the price of corn.
Soybeans are near their highs of the day. Soybeans still need additional acres and at least trend line yields to meet demand. New crop beans are up 1.5c despite new corn being down 7c.
Outside market forces are most positive, and option expiration today could make the rest of the day very volatile.
Good Luck & Happy Trading,
Justin R. Lewis, M.B.A.
V.P. - KIS Futures, Inc
Direct: (877) 431-9805
Cell: (580) 335-1602
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.