On December 19th, I put out a recommendation to buy the “old crop/new crop” bean spread between 9-10 cents. The spread is trading at about 18 to 19 cents currently, with a high price so far today at 23 ½. I’m recommending to those clients who bought the spread at 9 to 10 cents, to consider adding to the position at 18 cents. Your target price is still up around 40 cents, however I’m not willing to risk a loss on the trade any longer. If the spread drops below 13 cents…get out. We will look for a new entry point.
Please feel free to call me if you have any questions about this trade.
Series 3 Licensed
Frank J. Cholly
Senior Commodities Broker
Frank brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker..... Read More
Learn the fundamental factors that influence the Agricultural futures markets.
Get the fundamentals of agricultures