Markets

Windy City Trader Trade Tip Corn 9/8/2011

A little over a week ago, December corn had reached a new contract high at $7.80. The market Had broken out from a congestion area between $7.25 and $7.30. We have slid back towards $7.30 as we approach Monday's USDA supply/demand and crop production report. Markets often times break down a bit into harvest and this likely explains the drop. Most private forecasters are predicting lower estimates than last month's report. Each cent for corn = $50 as it is a 5000 bushel contract and there are also mini corn contracts (1000) bushels where each cent is $10. Margin for the full size is $2300 and $460 for the mini.

The Trade : Buy a December corn at market currently $7.35

The Stop: Place a sell stop at $7.24 $550 from $7.35 to the stop $110 for the mini

Objective: At least $7.60 to $7.80 25 cents is $1250 and 45 cents is $2250

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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