Wednesday, February 25, 2009

Corn Rallies on Short Covering, Technicals

I thought it was something Komrade Obama said last night, but apparently corn's rally today was due to short covering and buy orders that kicked in on the rally.

According to my broker, corn still sits about $.50 below the cost of production. I've read that for the most part, most grains and softs are currently sitting either below or just at their respective costs of production.

Reading this article reminded me that I completely forgot to roll my 2 March corn contracts - a couple more days and we might have seen a big old truck from Iowa pulling up at my doorstep to drop off a special delivery. Boy the wife would have loved that one.

So I just rolled them, but only picked up 1 May.

CBOT Corn Review: Surges; Short-Covering, Spread Unwinding

5 comments:

edzillion said...
This comment has been removed by the author.
S Benard said...

Wow! If you had 5000 bushels of corn being "special delivered" to your house, you'd have a supply of food for the next several years -- for the whole neighborhood!

I enjoy reading your blog posts. You've been trading futures a little longer than I have. Best success in trading!

Brett Owens said...

Ed, thanks will check it out.

S Benard, you got it man - better corn than crude oil I guess! Happy trading, and we are keeping Sacramento in line for you my man.

huh? said...

Question: If you were startting now with that $2000 stake, which commodity would you be looking at and why?

Brett Owens said...

Think I'd be looking at corn and sugar - corn which I own now, and sugar which I'm looking at anyway. Good fundamentals, and low contract sizes.

Coffee, cotton - which I also like - have too heavy margin requirements for a $2K account, it'd be too easy to go bust.

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