March corn futures finished the last trading day of the year down a penny, trading in a whopper of a range at 1 ¼ cents. Fridays Commitment of Traders report showed funds have a net short of 206,624 contracts, this was a reduction of 15,529 from the previous weeks short of 222,153. Although they did cover a small portion, this is still one of the most bearish positions they’ve had for this time of the year. For the year, front month futures were unchanged. Literally; March ‘17 corn finished last December 30th at 351.
Traders, producers, and other market participants are hoping that the start of 2018 will be livelier than the back half of 2017. Though the volatility has been extraordinarily low, there has been plenty of opportunity to trade the tight ranges with just as tight risk parameters. We will continue to play the ranges until we get a fundamental catalyst to give us a technical breakout or a breakdown. We will also be shopping for cheap options with decent time to get us through planting/growing season. When we look at implementing longer term option strategies we leg in in small increments and would look to exit in a similar fashion. Trading is very much centered around being proactive and not reactive. A lot of people I’ve spoken with over the years have a sour taste with options, particularly out of the money options that tend to expire worthless. Hoping for a little more, or hoping for one more day, the next thing you know 70% of the value is sucked out and you end up hanging on until 100% of the value is gone. Needless to say, hope is not an efficient or effective strategy over the long run. We offer our clients as little or as much help as they need when it comes to trading and/or hedging strategies. Aside from the free daily technical and fundamental analysis, free trading platform, and low rates, we are also available around the clock for you (call/text/email).
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.