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I Remain Bearish Corn Prices
05/07/2015 7:00 am EST
Although the summer months can experience extreme hot and dry weather, which can send corn prices sharply higher Michael Seery of SeeryFutures.com, thinks the current outstanding weather in the Midwest region of the US should allow for more planting ahead of the volatility.
Corn Futures—Corn futures in the December contract are up 2 cents in early trade in Chicago trading at 3.81 a bushel with a possible spite low in Tuesday’s trade as oversold conditions might be in place as I have been absent for the last several days unable to write about the commodity markets but I was recommending a short position when prices broke 3.95 if you took the original trade, placed your stop at the 10-day high, which—in Thursday’s trade—will be 3.95 a bushel risking around $.14 or $700 per contract plus slippage and commission from today’s price level.
Corn planting is around 55% complete, which is way ahead of the 5-year average, however, prices are at 7-month lows right near major support, as the US dollar continues to go lower against the foreign currencies, which is starting to push up commodity prices but corn is still trading below its 20- and 100-day moving average telling you that the trend is to the downside so take advantage of any rally while risking 2% of your account balance on any given trade.
The weather in the Midwest part of the United States is outstanding at the current time as Illinois will have 80° across-the-board for the rest of the week, which should allow for more planting ahead as volatility in corn will certainly increase as we head into the latter part of the month of May as the summer months can experience extreme hot and dry weather which can send prices sharply higher, but I think profit-taking ensued in Tuesday’s trade as prices could continue to go lower as I think this small rally was due to short covering.
Trend: Lower—Chart Structure: Solid
By Michael Seery of SeeryFutures.com
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