3 Way Spread, Crude Oil, Dollar Updates.

3 Way Option Spread

Back on February 24, I shared an option spread strategy to increase floors on your corn and soybeans.  The intent was to add this as a layer on top of your existing crop insurance policy because if you are collecting on your crop insurance this year, you are probably losing money.  I will be updating this strategy throughout the 2017 crop year.  As of today, both of these strategies would already be in the money.

Crude Oil

As I mentioned on my last post a few days ago, oil was forming a bear flag and would probably have at least one more leg lower before this cycle would finish.  I expect this to move to near $46.00.

Dollar

Grain looks to me to be in the beginning stages of trading fundamentals which really look poor at the moment.  On the bright side, the dollar is moving into its yearly/multi year cycle low now.  This is supportive of grains, but I fear that the market is beginning to focus more on massive new surpluses.    Its anybody's guess what will happen with the planting intentions report.  I will be working on some sort of strategy to help lock in a higher floor ahead of that report next Friday. 

Please do not wait until next Thursday or Friday to attempt to open a brokerage account.  If you would like to try any of these strategies I promote on this site, you should have your account ready.  You do not need to have the account funded ahead of any position you try, but you should at least go through the process to have it ready.  I don't have to be your broker to try these strategies, but here is the link to open an account with me.