What a great opportunity to hedge corn and soybeans, or to speculate on the short side. I understand that the current price level on corn is the highest ever during harvest. Just look at the weekly chart on corn; a classic top pattern in an over-bought market. The obvious support level is 4.25, but I believe our first target should be 5.20 where this market is likely to consolidate.

 

I refer you to an article of mine written Friday, July 29, 2011, in which I cited the top pattern on November soybeans and suggested a move down to 11.80. I believe that 11.80 will be met before the November contract goes of the board. Now look at the weekly soybean chart and you'll see a powerful sell signal! My new target for front month beans is 10.50. Be aware that patience will be required and rallies are to be expected; reactions in a bear market. How often, in recent months have we all heard that the Board of Trade markets had been influenced by "outside markets?" Last Friday, September 23, ended with weekly chart sell signals on a good number of "outside markets," including the stock market indices. Corn and soybeans ended that week in the same bearish condition. I'm going with those analysts that look for greater yields on corn and beans than had been expected. Of course, any speculative position must be protected in order to manage risk.

 

One of the great advantages in futures trading is the ability to easily seek profit during periods of falling prices. Let's take advantage of our advantages. Let me know your needs and goals in the futures markets...we'll then be able to determine if I may be of assistance to you. Looking forward to your response.

Please call me at 312.242.7933 or send email to john.booth@archerfinancials.com to discuss these or other markets. Best wishes for successful trading.