After today’s close could we see a bounce in December Corn next week?
May 16, 2014
DECEMBER 2014 CORN
SOURCE: CME Past performance is not necessarily indicative of future results. Although very 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.
The potential is there for a bounce going into the next week with mixed weather signals and the crop only 59% planted. There are some of the opinion that bushels and acres have already been lost with Michigan only 20% planted, Minnesota 31%, North Dakota 3%, and Wisconsin 20%. As cool temperatures and rain continue to make delays in planting many will begin to question how many acres have been lost to corn and have they switched to beans? Seasonally this is the time period for a seasonal low in December corn followed by a bounce into the Actual Acreage Report at the end of June. The chart above implies a near-term low could be in place and an opportunity to go short out of the money August puts to add to revenue could be seen next week.
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