2011 Dec Corn Could Be The Diamond In The Rough
Aug 19, 2010
The corn market is obviously going to stay somewhat supported by the Russian drought problem, as their issues are expected to only further increase export demand. As I have reported in our past few daily newsletters wheat feeding should drop dramatically with corn picking up most of the balance. From a trade perspective you have to start looking at the December 2011 Corn which in our opinion appears extremely cheap compared to the July 2011 Wheat and November 2011 Beans. If you assume corn will lose some acres to beans and wheat because of their recent price rally, and you believe the global demand is going to continue to increase then Dec 2011 Corn should look very attractive at these price levels compared to the other markets. You also have to think we may see several operations double crop wheat and beans next year.
If you would like some specific trade recommendations, low cost spreads or option strategies for this market please give our Ag Hedge offices a call at (816) 322-9800 and we will design a strategy that is right for you and your operation.
I hope some of you had a chance to look at yesterdays trade recommendation to buy (5) Dec corn and Sell (2) Nov Beans. The trade is close to reaching our profit objective in just two short days.
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