Corn is King - Of The Bears
By John Booth, Archer Financial Services
Sorry to sound like a broken record, but nothing has changed; corn is still on sell signals and now the latest USDA report strengthens the case for being short.
As a technician, I concentrate on charts and technical trading tools, but as a "news junkie," I am well aware of what is going on in the world and consult with fundamental analysts and researchers. It seems to me that this is one of those times in which both camps are in agreement. Barring severe weather problems domestically or elsewhere in the world, corn prices are destined to go much lower.
CORN FUTURES - WEEKLY CONTINUATION
Chart provided by APEX
Some downside targets cited in previous articles have been met, but now new targets are called for. Yes, it has been tough sitting through some reactions in this bear market, and yes, speculative traders (nonhedgers) have certainly had opportunities to profit on the long side during some impressive rallies (if they were nimble and quick). This may not be popular with those who prefer to participate in bull markets, but it looks like it is reasonable to expect new crop corn prices to reach as low as $4.00. Once again, patience is required, and of course, any position must be protected to control and manage risk.
Let me know your goals in futures trading ... we will 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 email to john.booth@archerfinancials.com.
Best wishes for successful trading.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.
