Who is this for?

This signal is specifically for the following:

You feel like you are behind in your marketing
You feel like you missed the first opportunity back in March
You lack storage and are forced to be more aggressive in your marketing
If you followed our April 10th buy signal, take profits: Click Here for Buy Signal

If none of those apply to you, then it’s okay to be little more passive given the potential factors at play.

We overall think the corn market has a developing long term story and there is a decent chance we haven’t seen “THE high” but short term we are nearing some spots on the charts where we could struggle and where it makes sense to de-risk if you are someone who is in one of those scenarios mentioned above.

Below we break down some scenarios you may be in.

What can you do?

From now on we will be trying to breakdown our signals into 4 scenarios you may be in. As grain marketing is not one size fits all.

There are still plenty of situations that these 4 generic situations don’t cover such as risk to reward profile, if you rent or own land etc.

The only breakdowns we are doing are:

Storage vs No Storage
Hedge Account vs Cash Only

Storage & Hedge Account (New Crop)

Previously sold or hedged was bought on April 10th buy alert, which booked profits.

On this sell signal we are looking to sell the $5.50 Dec corn calls against 25% of production.

We also like doing 50% of production on a price repair strategy using the August $4.60-$5.00 call spread. (Buying 1 $4.60 and selling 2 $5.00).

We then like placing an order to re-hedge 25% of your crop at $4.95 Dec futures.

Give us a call if you want to talk specifics or have questions.

Office: (806)484-1214

Storage & Cash Only (New Crop)

Catch up to 30% on your sales if you are not there already via an HTA.

No Storage & Hedge Account (New Crop)

Previously sold or hedged was bought on April 10th buy alert, which booked profits.

On this sell signal we are looking to sell the $5.50 Dec corn calls against 25% of production.

We also like doing 50% of production on a price repair strategy using the August $4.60-$5.00 call spread. (Buying 1 $4.60 and selling 2 $5.00).

We then like placing an order to re-hedge 25% of your crop at $4.95 Dec futures.

Give us a call if you want to talk specifics or have questions.

Office: (806)484-1214

No Storage & Cash Only (New Crop)

We like being 40% sold here.

We want to be 70-80% sold by early July.

Old Crop Segments

1) If you are behind:

We like getting caught up.

2) On pace:

Make an additional small incremental sale.

3) If You Have a Hedge Account:

Add the price repair strategy, and or short puts for re-ownership offers.

4) Only Gambling & Summer Weather Bushels:

Hold.

May Basis Contracts:

Basis contracts have to be priced this week.

If you want to continue to own, consider selling a July $4.50 put.

Give us a call if you want to talk specifics or have questions.

Office: (806)484-1214

Why the signal? Let’s look at the charts.

July Corn:

Now firmly inside the golden zone.

50-61.8% of the entire sell off.

This is where the market often decides if this is simply a dead cat bounce or the start of something bigger.

If we are going to fail, this would be the spot we’d expect it happen. If not, odds favor us going to test the highs.

This same level was our resistance last fall and support last spring. A pretty big level for both bulls and bears.

May Corn:

The focus is going to be the July contract from now on, but May is also firmly in that golden zone and up against that resistance from last fall.

Tagging that 61.8% level this morning. The most common retracement level for a relief bounce if this truly is just a relief bounce.

Dec Corn:

Clawed back 61.8% of the sell off.

Again, if this is a relief bounce this is where we could expect us to struggle.

If we take out this level, chances are we go and test the highs.

Here are the next targets for Dec corn.

After this the next target is the highs around $4.96. Which was the original target we had back in March.

The 3rd target is going to be $5.12-15

$5.12 is the contract highs.

$5.15 is the golden fib extension from the recent sell-off.

Meaning $5.15 equals 161.8% of the recent lows up to those March highs. A common continuation target.

Want to Talk?

Our phones are open 24/7 for you guys if you ever need anything or want to discuss your operation.

Jeremey & Office: (806)484-1214

Sebastian: (605)280-1186

Email: sfrost@dailymarketminute.com

Hedge Account

Interested in a hedge account? Use the link below to set up an account or give us a call.

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