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CORN

Grains will shock youWith all the drama of last year and many areas locked down, one of the big sufferers was agriculture. Much of last years yields went to waste and panic buying occured. Which I'd guess also went to waste for the most part. As you can see on my chart I'm expecting a sizeable pullback in price before the event, which is completely normal. let it collect the orders down there and get in where you feel comfortable. From there hold way into 2022. I wouldn't like to call the top on this, but it'll be impressive. Checkout soybean and corn also. Why do you think they drove up so hard in price? Happy trading and don't long just yet. (July?).
CBOT:ZW2!Long
by UnknownUnicorn1040545
🍿Corn- I like to call it Bitcorn (3% higher again today) 🌽🌮Corn is not a cryptocurrency, to begin with. For some of you all you trade is cryptos. I could understand that up to a degree but it is SO wrong. Cryptos should be a part of your trading/investing, you should always diversify and keep your eyes open for opportunities in other categories like commodities, shares, indices, etc etc Well, here is the update on Corn, for those who work closely with me we managed to sell big on Thursday and Buy back on support on Friday..we touched perfection this time so let's keep it that way. :) look at the previous idea(s) for our 900+ target price on Corn the FXPROFESSOR
FX:CORNFLong
by FX_Professor
4
ZCK2021. Ags have been the market to be in.The ag's have been hotter than bitcoin this spring, and I've been so stuck in my little learner's bubble I barely noticed. I'm looking at corn thinking this is some buyer exhaustion, but I also see that typically corn prices stay on the rise through June/July. This zone I have highlighted seems like a really friendly place to enter the market, however, I don't understand what is going on at the top, and if that is some kind of artificial capping done by market makers I absolutely don't want to be buying just under it. What in the world is going on here?
CBOT:ZCK2021Long
by emehoke
🍿 ''Bit''CORN keeps FLYING!🌽🌮🌾We knew we could have the rewards of a ''cryptocurrency trade'' with aq traditional, soft commodity and we knew that was Corn. Further to our previous idea the chart was agreeing with the statement and we are now half way through to the 918 target. So, allow me to call it ''BitCorn'' ps. Fun fact : ''Corn has proven itself to be one of the most effective alternative energy sources, placing it in the ranks of coal, gas, wood, etc. Corn is an excellent energy source because the corn cob is very dense and slow burning. Is corn an efficient energy source? Corn ethanol seems like a renewable energy source — a source that cannot run out — because corn can be planted again and again, and the energy in corn comes from the sun, not a limited supply of coal or oil in the ground. ... Most of this energy currently comes from fossil fuels like coal, oil and natural gas''. the FXPROFESSOR
CBOT_MINI:XC1!Long
by FX_Professor
1
This Corn Spread Can PopThis is a good spread to trade. If you’ve not traded Corn before, just read on, because this style of spread trading is interesting. It has both technical and fundamental aspects and is built on a history of good stats. Corn has an annual crop cycle. It’s planted in April/May, subject to weather issues in the following months, then harvested for first delivery on the Dec futures contracts. The Dec contract is based on what they call the ‘new crop’. But before then, there are other contracts still banging about. Corn futures have March, May, July, Sep and Dec maturities. So any active contracts before Dec are based on the ‘old crop’, the stuff that was harvested last year. So early to mid-year, we have a situation where some of the futures contracts are based on known supply and others (Dec and beyond) are based on the stuff that is still green. That young and growing crop is subject to uncertainty of weather and other growing conditions. Spreads are great tools in which to trade shifting certainty. And with something like an annual cycle of growth and harvest, you build a database and look for what they call seasonal patterns. The Trade: Selling the Sep and buying Dec for a hold of several months, in the past has proven to be a very reliable trade. In fact, optimized for timing, an entry during May and an exit early August has been profitable 95% of the time in the last 20 years. For 2020, I like this spread now given the market is in backwardation. That means the near (short) month is trading above the back (long) month. Corn has had a great run up over the past few months and pull back might see that backwardation reverse to contango and move with the seasonal trend. Stats: 19yrs out on 20yrs profitable. That’s selling the spread in May and buying back in August. Optimized timing of course, but still the numbers are good. In the last 10yrs, profit has averaged about 10 cents, or $500 per spread. Drawdowns have been three figures also, aside from 2011-2013 when things went a bit crazy. Trading; This one has an exchange listed spread so entry, exit and GTC stops are easy. For something like this, I would tend to start with a 3*ATR for a stop and see where it goes. Entries by way of selling into rallies. Check your broker offers SPAN margining. If not, get a new broker. Alternatives: The same spread can be achieved by selling July instead of Sep. Some years that is a better option, some not. More often than not, it would carry more volatility (up and down).
CBOT:ZCU2021Short
by TheTradarien
4
Everything is set for a large bull run - Corn Corn looks very bullish to me. Corn has large gaps between support/resistance levels. That means when the price moves it moves fast. Corn price has broken two resistance levels and broken out of a symmetric triangle to continue the bullish momentum. The large time gap between the previous high and the breakout could mean that Corn could move to the next level quickly as well. This is not a financial advice, do your own research before investing.
CBOT:ZC1!Long
by titusj
3
New Highs in Corn Corn probes above $6 for the first time since 2013 Farmers will favor beans Keep an eye on gasoline and ethanol prices Corn continues to pop going into the planting and growing seasons- It’s all about the weather Backwardation as the market has high hopes for 2021 output In late April 2020, the corn price fell to its lowest level since 2008 when the continuous corn futures contract found a bottom at $3.0025 per bushel. The pandemic pushed prices lower across all asset classes. Corn is the primary ingredient in US ethanol production. The ethanol mandate that requires a blend of gasoline and biofuel in the US closely ties corn’s price to crude oil and gasoline. In April 2020, crude oil fell below zero to a low of negative $40.32 per barrel. Gasoline prices declined to 37.60 cents per gallon wholesale in March 2020, the lowest price since 1999. The price carnage in the energy sector and selling in all markets pushed corn to the $3 level where it found a bottom. Last week, corn moved to its highest price since July 2013 at nearly double the April 2020 low. Nearby May futures probed above the $6 per bushel level. Corn probes above $6 for the first time since 2013 On April 15, corn futures put in the most recent high when they traded to $6.015 per bushel on the nearby March futures contract. The chart highlights eight consecutive months of gains in the corn market as of mid-April 2021. A close above the $5.6425 level at the end of April will mark the ninth straight monthly price increase in the coarse grain. Open interest, the total number of long and short positions in the corn futures arena has been rising with the grain’s price. Increasing open interest as the price of a futures market rises is typically a validation of a bullish trend. Monthly price momentum and relative strength indicators are in overbought conditions, but they continue to rise. Monthly historical volatility at 22.31% signifies the rally is slow and steady. Corn futures are bullish, with the price at its highest level since July 2013. The next upside target is $7.30 per bushel, that month’s peak, which is a gateway to the 2012 $8.4375 all-time high in the corn futures market. Keep an eye on gasoline and ethanol prices The US ethanol mandate ties corn’s price to gasoline. The US is the world’s leading corn producer and exporter. Corn is the input into US ethanol processing. In Brazil, sugar is the input. Like corn, sugar prices have been rallying over the past months as the demand for ethanol rises with gasoline prices. The chart shows that gasoline futures rose from the lowest price of this century at 37.6 cents per gallon in March 2020 to the highest level since 2018 at $2.17 per gallon in March 2021. Higher gasoline prices have pushed ethanol to a multi-year peak. The monthly ethanol futures chart illustrates that the biofuel’s cost has risen to its highest level since December 2014 at $2.01 per gallon. Higher ethanol prices support higher corn prices. Continue reading the full article using the link below. Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading.
CBOT:ZC1!Long
by Andy_Hecht
Cattle and Corn: An Obscure Spread With Interesting NumbersAn interesting spread here. I’ve traded this one on and off over the years. It’s a long-term hold and some years this spread just has a nice smooth trend. Think of this spread as a cost of carry, in a way. Or perhaps: wholesale versus retail is a better way to look at it. Feeder Cattle (young moo cows) + Corn (food) + time equals Live Cattle (grown up ones). It’s like that math parents do when say “do you realize how much it costs to have a teenager and send him/her to college?” In futures we can trade that, for cattle and corn at least. We can see where base cost of production is over or undervalued and with a bit of patience, these kinds of trend trades reveal themselves. This one has a great seasonal pattern. That is, it tends to repeat itself each year. Not every year, but most years. Research says selling Feeders and Corn and buying live Cattle can be quite profitable. On average, an entry late April and exit late Sep has been profitable every year since 2005. From 2006 onwards: 100% strike rate, average profit $3374 for one spread. Formula: (+2*400*Live Cattle) – (1*50* Corn) – (1*500 * Feeders) Essentially it says one contracts of feeders (50000lbs) plus one of corn (5000 bushels) makes about two live cattle (80000lbs). Some also trade a 1 Corn: 2 Feeders and 4 Live Cattle. Its’ essentially halving the corn requirement from above. Remember, there are no rules in spread trading. Our job is to find the correlations and trade them. Risk: Hmmm, there are two ways to look at that. The stats say the worst drawdown in the last 15yrs in $5400 and that is about double of most other years in that time. So it’s not a small risk trade. The other way is to eyeball a chart. That recent move from +2000 to 0 did not take long at all. Unless get a well-timed entry, then stops will have to be wide - a few thousand at least (about 3.3 times ATR). It’s one where you would start with a wide stop and bring it in should you see some equity. Entries and exit need finesse since it’s not an exchange traded spread. Experienced spreaders only, with knowledge of seasonality. In you are new to these kinds of spreads, mark it down as market knowledge and come back for a look later on.
CME:LEJ2022Long
by TheTradarien