Published on: 13:07PM Sep 24, 2008
The corn and bean market both saw modest gains today but the was able to get above the important $6 level in December 2009 corn and $12 in November 2009 beans. Both price levels have been psychological overhead resistance levels. The major long term resistance for December corn is $6.50 while $13.25 is for beans. My bias continues to be very strong that there is justification for corn to rally but beans are living on borrowed time. I continue to urge producers to look aggressively at getting a floor under all of their 2009 beans at current levels by forward selling in the cash market and then come back on paper with a 3 to 5 dollar vertical call strategy. I continue to stress the potential for significant increase in bean acres domestically and internationally next year with a very uncertain demand outlook at best.
We just put a special report on at our website about a natural gas play for this winter and fall. If you are interested call us for a free trial subscription. Bottom line: it’s time to buy at the 7-cent range.
December hogs are starting to develop a solid technical base at the 65 to 66 level. The charts are very balanced right now and would suggest we could go either way. Since we could still see a little more sell off on herd liquidation into October, I would hold off on buying for a bounce but it’s very close and one needs to be ready.
Just a quick note about gold—the reason why ag traders watch it is because it’s historically been a good warning signal for inflation or a flight of capital from the equities which also helps commodities. After seeing close to a 1,000 a ounce high in July, it crashes below $750 in a significant long liquidation break. Then in September we experienced a historical one day rally. This was all fueled by the uncertainty associated with the financial markets. The chart is developing a compression formation called a triangle formation. The implication one should be getting ready for a violent price move. We could go another couple of days but I would not be surprised to see a major breakout by mid week. Since it’s difficult to say which way this would be an excellent time to buy a put and call in nearby options. Once the breakout occurs hold the winner and sell the loser.
If you want to go over details or would like to read more daily recommendations regarding reownership or marketing strategies, email me at [email protected] or [email protected].
BEFORE TRADING, ONE SHOULD BE AWARE THAT WITH POTENTIAL PROFITS THERE IS ALSO POTENTIAL FOR LOSSES, WHICH MAY BE VERY LARGE. YOU SHOULD READ THE “RISK DISCLOSURE STATEMENT” AND “OPTION DISCLOSURE STATEMENT” AND SHOULD UNDERSTAND THE RISKS BEFORE TRADING. COMMODITY TRADING MAY NOT BE SUITABLE FOR RECIPIENTS OF THIS PUBLICATION. THOSE ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. ALTHOUGH EVERY REASONABLE ATTEMPT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION PROVIDED, UTTERBACK MARKETING SERVICES INC. ASSUMES NO RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS. ANY REPUBLICATION OR OTHER USE OF THIS INFORMATION AND THOUGHTS EXPRESSED HEREIN WITHOUT THE WRITTEN PERMISSION OF UTTERBACK MARKETING SERVICES INC. IS STRICTLY PROHIBITED. COPYRIGHT UTTERBACK MARKETING SERVICES INC. 2008.