By Jon Scheve, Superior Feed Ingredients, LLC
For the 1st time in 9 years, December corn on the last day of November traded higher than the last day of October by 3 cents. Looking forward, 7 of the last 8 years, March corn eventually traded at a higher value than where it was on the last day of November. The rally was more than 25 cents 6 of those 7 years. Following the 2012 harvest was the only year when prices didn’t rally, and after the 2015 harvest March futures only rallied 9 cents.
While obviously historical trends aren’t a guarantee, I think this suggests there is opportunity in the corn market.
Capturing carry and paying for storage
Last week I rolled my December futures sales to July to take advantage of the 27-cent market carry available in the market.
I bought my December futures back and immediately sold the July contract.… Continue reading