This weeks grain trades we are continuing to see a lot of opportunities in corn. Last we we talked about December14/March15 bear spread, we recommended selling this spread at -5.00, but we ended up selling this spread at -6.00. We have since then covered this spread up $100 per contract. We did this so we could move into a spread that we feel has more potential.
Trade Idea: Corn Sept14/March15 The seasonality of this spread is very strong, over the last 20 years of trading this spread you would have only lost once. With a highly correlated 5 year and 15 year price averages we really like this spread. Fundamentals on corn are neutral to slightly bearish in our opinion. Old crop stocks are good and we believe we should have a good growing season. We like selling this spread at -4.00 or better risking about 6 points of possible up side risk. We will add at -1.5 if we get there, and still only risking about 6 points. Our target on this spread is -12.00 or $400 per contract. Making this risk to reward very appealing to us. As we write this we are filled at -4.00.
Days in Trade—–43
Through out the week we have closed and opened a bunch of positions. Below is a list off all our open positions
1. Crude Oil July/August Short at $1.00
2. Nat Gas August/October short at $.0180
3. Corn September14/March15 short @ $-4.00
4. Wheat July/December Short at -22.75
We also have a resting order waiting to get fill-Soybean Oil Dec/Jan $.00
If you have any questions please feel free to contact me at PhillipMartucci@gmail.com