We are watching the Sep/Dec corn spread for two reasons:
(1) We believe the premium of the Sep contract is worthy of cash sellers to go after if delivered by mid–September.
(2) Speculative sell the bear spread to add to cash values. We will be looking at this alternative very carefully as we move into late April to early May.
The last time we saw spreads anywhere near the current level was in 1996 when the spread was taken clear out to 70 cents. At this time the spread is at 50 cents and that’s our near-term target to consider bear spreading.
Sep/Dec 2011 Corn Spread: We want producers to place this spread on their watch list. It’s not time yet; but, if the Sep/Dec spread can widen to 65 to 80, consider a bear spread position to add speculative value to Dec cash sales.
SOURCE: GLOBEX/CBOT PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. 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.
Tomorrow I will discuss the July/Nov Soybean spread.
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. 2011.
