Still Sitting On Hands

As I stated back in September, corn continues to grind higher....at an excruciatingly slow pace.   There just are no fundamental drivers to send it higher really, but no new bearish news either.  Until the trend breaks, I expect this trend to continue for a few more weeks.  Until something happens, I suggest you continue sitting on your hands with the corn and the soybeans.  I have made no recommendations now for over a month when I closed out the synthetic corn long trade.

Corn

I think at some point...probably options expiration on November 18, we should be at or near the 200 day moving average (green line on the chart below), which would be in the $3.69-$3.70 range.  At that time, I plan to close the books on the 2016 corn crop and begin looking ahead for opportunities to sell some 2017 corn.

Soybeans

As hard as it is to believe, its been over 5 months now since my final recommendation to sell soybeans at $10.61.  That was 75 cents ago.  If you are still holding onto unpriced soybeans, I see fundamentals under the market in a similar way to corn.  There is no fear of running out of soybeans, so they have been just trending sideways now, never moving far either way from the 200 day moving average (green line).  I think with the election behind us, we could get a small bounce in the bean market that could push prices into the $10.26-$10.50 range.  The CCI oscillator (see the sub graph) will probably give a sell signal when prices reach that level.  I will make note of it here when that happens and send out a text.  That will probably be your last great opportunity to sell the balance of your beans. 

Back in June, I had recommended to sell 10% of your 2017 soybean crop at $10.05.   When the price action above occurs, it will probably be a smart time to price more of the 2017 crop.  The chart below is the November 2017 soybean chart.  You can see that we caught the first 10% near the contract highs.  This move will test that high, and possibly make a new contract high.  I expect to sell more beans at that time.