Finding profitability in tight market ranges

By Jon Scheve, Superior Feed Ingredients, LLC

For the last 3 months, corn has traded in a very tight range.  In 55 of 68 trading sessions, March corn futures closed between $4.20 and $4.40.

In 28 of 33 trading sessions, March corn has closed between an even tighter $4.25 to $4.40 range.

And, it’s been over 5 months since March corn closed above $4.50.

Can corn keep going up?

While export demand has been great, and could help support a rally, there is still way too much corn that hasn’t been sold still sitting in farmers’ bins. That’s why it’s hard for me to be bullish right now. I expect any rally will be met with farmers selling to bring in some cash before and right after the new year.

Beans

January bean futures have traded in a tight 25-cent range from $9.75 to $10 over the last 2 months. Only 11 of the last 37 trading sessions have had closes above $10.… Continue reading