Twice this year the July corn contract has found support just above $6.00 a bushel and rebounded nicely from that level on both strong technicals and fundamentals. After a gap down last Tuesday mainly on the crop report (numbers came in on the higher side of trade expectations), it appears ready for another test. I am looking for the $6.00 to hold again as it is not only a key support area, but was also an area of consolidation at the end of 2011. We are watching weather reports and planting progress very closely which could have a significant impact on the old crop i.e. July contract as the supplies are somewhat on the tighter side. Also, keep an eye on talks that China may step in as a buyer after the most recent break. This could make for a nice time to initiate a bullish position.
For traders who are interested in learning about a bullish July corn option ratio strategy please contact Michael Sabo, Senior Commodities Broker with RJO Futures at 1-800-367-7290 or by email at msabo@rjofutures.com.
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800-367-7290 312-373-5248 Series 3 Licensed |
Mike Sabo
Senior Commodities Broker
Mike was past president and co-founder of United Futures Trading Company, Inc., as well as Investment Analysis Group, Inc. In 2006 Mike joined Lind-Waldock as a senior market strategist. He joined RJO Futures in 2011..... Read More
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