Corn Crash!

Subdude · Jul 1, 2008

I'm surprised CBOT's margins for corn are the lowest of all ag futures, given this much volatility. Just a matter of time before they catch on.

ess1096 · Jul 1, 2008

Quote from Subdude:

I'm surprised CBOT's margins for corn are the lowest of all ag futures, given this much volatility. Just a matter of time before they catch on.

SSHHHHHHH!!

simpleton · Jul 2, 2008

Shorted some more. Its starting to become a pretty hefty position for me.

Subdude · Jul 2, 2008

Ok, what exactly happened in the last couple of minutes of the open auction session - just a short squeeze? Lesson learned - never short in the last half hour of the session.

simpleton · Jul 3, 2008

Quote from Subdude:

Ok, what exactly happened in the last couple of minutes of the open auction session - just a short squeeze? Lesson learned - never short in the last half hour of the session.

I missed the close. Would have been a great place to add more to my short. But highly likely I'll see even better levels with oil on such a tear.

ProfLogic · Jul 3, 2008

Quote from simpleton:

I missed the close. Would have been a great place to add more to my short. But highly likely I'll see even better levels with oil on such a tear.

I'm confused.
Why not buy into the creation and confirmation of the long term top instead of constantly adding to a current losing trade?

simpleton · Jul 3, 2008

Quote from ProfLogic:

I'm confused.
Why not buy into the creation and confirmation of the long term top instead of constantly adding to a current losing trade?

I want to maintain a core short position but I take some of it off on sell offs and then add it back on the upticks. When I started this my avg cost was in the mid 760 area which I then covered most in the 720s. Then I reshorted when it went back up with my cost again in the 760s. Again covered most in the 720s and now looking to add my shorts back in. So its currently not a losing trade and a decent money maker so far. If it goes to 800, I will probably lose a little overall. I just think that the next BIG move will be down and hopefully I don't cover too early.

ProfLogic · Jul 3, 2008

Quote from simpleton:

I want to maintain a core short position but I take some of it off on sell offs and then add it back on the upticks. When I started this my avg cost was in the mid 760 area which I then covered most in the 720s. Then I reshorted when it went back up with my cost again in the 760s. Again covered most in the 720s and now looking to add my shorts back in. So its currently not a losing trade and a decent money maker so far. If it goes to 800, I will probably lose a little overall. I just think that the next BIG move will be down and hopefully I don't cover too early.

Ok, I understand your trade management now.

Subdude · Jul 7, 2008

Sweet, covered my July short @ 697.

caroy · Jul 7, 2008

Nice cover on the corn. Looks like demand has dried up from the ethanol houses. Can't make money in ethanol unless corn trades below 634. The margins just aren't there.

Thoughts on the flood. I don't know about the flood being that damaging. Corn is resilient. Stalks can be underwater for two to three days and rebound at a young stage.

The market commentaries on the huge sell offs were a little week.

Expect more slight sell offs tomorrow before corrections unless the system in Argentina straightens itself out.