CZ corn has had a $2.07 cent break in one month. The August high at $7.79 melted down to last night’s low at 572 1/4. That’s a 26% haircut in a month. Also we went down to our Summer lows at 5.75 and we held.
I would buy cheap out of the money calls….6.70 calls for 10 cents for the next 53 days.
I would buy these and hold them as long as the 5.75 level holds. If that level does not work, then immediately sell those calls off. We could be looking at Corn 08, when we broke all the way down to sub 4 corn, mostly because people bought the first hard break.
That being said, ten cents is a reasonable amount to put into a call option.
We may be a little early on this, but I think we need to step in and get these on.
government’s willingness to bail out Greece. It seems to me that Greece has been defaulting on its debt for ever. In actuality its been a 20 month unfolding train wreck.
Will the politicians and bureaucrats do the right thing? What has that track record produced over the past 2000 years? Exactly….
1076 in the S&P Cash…. 10,600 is a Double Bottom in August and September of this year. If that does not hold then its Katie bar the door. All the kings horses and all the kings men won’t be able to put Humpty Dumpty back together again.
10,400 in the Dow futures translates to support.
I know it seems odd to be looking for a bottom in the grains while looking for a potential melt down in the stocks.
But that’s what the charts are telling us.
I believe we could have a huge relief rally if we can get the EU to once and for all address the banking woes.
That is all.
CER