With corn at record levels, one has to consider at what point it continues to attract fresh buyers. A bull must be fed every day. A bull market needs sustained buying. A bull market can fail, no so much do to some graphic or frightening catalyst. Very often bull markets begin to turn on nothing more than a lack of new buyers.
I believe that CZ at 715 is getting into the latter stages of attractiveness. Morgan Stanley came out and predicted 900 new crop CZ corn, everyone and his brother is bulled up.
Wheat is already starting to roll over technically, Beans can’t get above 14.00 to save a life. At some point is corn strong enough to pull the whole complex higher? I have my doubts.
I really like buying cheap CZ 5.00 put for 6 cents a bushel, or 300 bucks a contract. Those could be worth 20 times that come Thanksgiving and harvest pressure. 4.50 cent puts for 2 cents? if we break to 3.50 you’d make 100K on a 1,000 investment. Just food for thought..
In the Dow, I think we find support, temporarily at 11,800.
Have a great weekend.
CER