The question on most traders and producers’ minds is have we seen the top in the grain markets?  I don’t believe we have yet.  The chart patterns still suggest the long-term upside trend remains in place even with corn off over $1 and soybeans off about $2 from their most recent highs. Until we see failure of the major trend lines in these markets, I believe traders should still look for buying opportunities. Recent rainfall has put the market under some pressure, to be expected, which should be used as a buying opportunity but not without a solid risk management plan in place. In the corn and soybean market traders could consider buying futures at these levels and using an option strategy to manage the risk. With the sizable daily ranges and increased margins using an option strategy to manage your futures positions risk can reduce margin requirements and allow you to weather the day to day “market noise” while keeping your focus on the bigger trend. Feel free to call me at 1-800-367-7290 to discuss some current trading strategies.

Corn Daily Chart
800-367-7290312-373-5248Series 3 Licensed

Michael Sabo

Senior Market Strategist
Michael was past president and co-founder of United Futures Trading Company, Inc., as well as Investment Analysis Group, Inc. In 2006, Michael joined Lind-Waldock as a senior market strategist. He joined RJO Futures in 2011.
Read More