Commentary: The corn market did a good job today closing higher. I say this because it looks as though the funds sold up to 2000 contracts on the day. The big talk today is that a large ethanol producer shuttered today for a bit. This is an ongoing trend and is of concern to the corn demand story. In addition, the export pace remains 25% lower year on year. Perhaps the market is saying for now at these levels much is baked in the cake. If so, the May contract low of 332 could hold. The USDA will most likely not make any changes to acreage estimates for 30-90 days. This leaves the analysts with a say till then. The general thought is there are some switches. A rally in beans to 9.00 plus could add fuel to this fire. There are positives as well. The animal numbers are on the rise for better or worse. This ensures solid feed demand. In addition, an additional 1.5 million tons of corn demand from China would go a long way at present. Use 332 as a out basis the May. Look to keep the upside open for now. A close below this critical level and the market could seek lower levels.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.