DOWNSIDE PROTECTION IN OLD CROP CORN
We sent out a sell signal two weeks at our $4.36 target in March corn.
If you missed it here is a link:
Todays alert is to reiterate that we still want to have downside protection in old crop corn if you do not already have some from our last alert.
Who is this alert for?
This is for those who need to move corn by May or sooner.
Downside Strategies
The simplest thing you could do is to simply consider buying some puts to lock in a floor as puts are pretty cheap right now.
It makes sense to buy a put that aligns with your operation.
Lauren went over a few downside stratgies to consider in her blog post yesterday that I included in yesterday’s market update.
If you missed it here is a link:
If you want to talk specifics and see what the best strategy might be for you please reach out to Jeremey or Lauren and we can talk it through.
Jeremey: (605)250-3863
Lauren: (806)484-1214
Why do we want downside protection?
For starters, this is a weak time frame seasonally like we have been very vocal about the last several weeks.
Here is the July corn seasonal.
Here is the July corn chart.
We rejected that old support level from last year.
Similar to how the harvest rally rejected the spring support level.
That was the reasoning behind our sell signal two weeks ago.
We now have a potential breakdown of this bear flag.
The “implied move” is around $4.15
No. We do not have to get that low. This is not me calling for $4.15. I have my doubts about us doing so.
But that is your risk moving forward here.
$4.15 is also 161.8% of the size of the USDA sell off.
We also have the MACD on the verge of flipping bearish.
It’s simply a momentum indicator.
The last few times it flipped bearish, it led to further weakness.
Don’t miss future updates or signals
Lock in full access before your trial ends
Past Sell or Protection Signals
Feb 6th: 🌽 🌱
Corn & soybean sell signal & hedge alert.
Feb 4th: 🌱
Soybean sell signal & hedge alert.
Dec 11th: 🐮
Cattle sell signal & hedge alert.
Dec 5th: 🐮
Cattle sell signal & hedge alert.
Nov 17th: 🌱
Soybean sell signal & hedge alert.
Nov 13th: 🌽 🌱
Managing risk in corn & beans ahead of USDA report.
Oct 28th: 🌽
Corn sell signal & hedge alert.
Oct 27th: 🌱
Soybean sell signal & hedge alert.
Oct 13th: 🐮
Cattle sell signal & hedge alert.
Aug 22nd: 🌱
Soybean sell signal & hedge alert.
July 31st: 🐮
Cattle sell signal & hedge alert.
July 10th: 🐮
Cattle sell signal & hedge alert.
CLICK HERE TO VIEW
June 5th: 🐮
Cattle sell signal & hedge alert.
June 2nd: 🌾
MPLS wheat sell signal.
April 10th: 🌽
Old crop corn sell signal.
March 19th: 🐮
Cattle hedge & sell signal.
Feb 18th: 🌽 🌾
Old crop KC wheat & old crop corn signal.
Jan 23rd: 🌽 🌱
Corn & beans old crop sell signal.
CLICK HERE TO VIEW
Jan 15th: 🌽 🌱
Corn & beans hedge alert/sell signal.
Jan 2nd: 🐮
Cattle hedge alert at new all-time highs & target.
Dec 11th: 🌽
Corn sell signal at $4.51 200-day MA
CLICK HERE TO VIEW
Oct 2nd: 🌾
Wheat sell signal at $6.12 target
Sep 30th: 🌽
Corn protection signal at $4.23-26
Sep 27th: 🌱
Soybean sell & protection signal at $10.65
Sep 13th: 🌾
Wheat sell signal at $5.98
May 22nd: 🌾
Wheat sell signal when wheat traded +$7.00
Want to Talk?
Our phones are open 24/7 for you guys if you ever need anything or want to discuss your operation.
Hedge Account
Interested in a hedge account? Use the link below to set up an account or shoot Jeremey a call at (605)295-3100.