Corn Crash!

[Subdude]

Quote from Bingoking:

Not a lot of potential to the upside either. We are getting thru the pollination stage in pretty good shape weather-wise.

This bounce must have been caused by the USDA report - perhaps the crops are not doing that great, after all. Let's see if this is a headfake or a genuine reversal.

 

[tr51]

today went long 10 cz8/short 10 wz 8 at 2.20 discount to wheat

 

[cszulc]

Could close on a Doji candle today....

 

[Rtrader2525]

Quote from tr51:

today went long 10 cz8/short 10 wz 8 at 2.20 discount to wheat

be very careful with that nasty spread, cost me and my business partners about 300 k total last year man. I think you'll be okay it just gives me fucking nightmares thinking about it

 

[Rtrader2525]

i know some big dairy farmers that were heavily involved in the spread and they loswt around 600 k finally before they had to get out. it was a rough year for the wheat corn lol

 

[tr51]

Quote from tr51:

today went long 10 cz8/short 10 wz 8 at 2.20 discount to wheat

took my 0.10 per contract hit (-$5000)

now looking to get in again i.e. long cz8/short wz8

cannot justify wheat at these levels

 

[tr51]

Quote from Rtrader2525:

i know some big dairy farmers that were heavily involved in the spread and they loswt around 600 k finally before they had to get out. it was a rough year for the wheat corn lol

I also have heard of some pain out there. I bot the cz/wz in april at average 3.15 and later stopped myself out average 2.11 for a nice ride.

I am however keeping a close eye on all the wheat going into feed in Europe due to high corn prices

 

[tr51]

Quote from tr51:

took my 0.10 per contract hit (-$5000)

now looking to get in again i.e. long cz8/short wz8

cannot justify wheat at these levels

Busy trading the minis and missed my cz8/wz8 at -2.38

 

[Rtrader2525]

Quote from tr51:

I also have heard of some pain out there. I bot the cz/wz in april at average 3.15 and later stopped myself out average 2.11 for a nice ride.

I am however keeping a close eye on all the wheat going into feed in Europe due to high corn prices

that was a spread that my family has traded for probably 30 yrs man and it got so fucked up last year, it was a rough summer to say the least.
good luck though, i just dont feel comfortable going in at this point right now

 

[ProfLogic]

Quote from Rtrader2525:

that was a spread that my family has traded for probably 30 yrs man and it got so fucked up last year, it was a rough summer to say the least.
good luck though, i just dont feel comfortable going in at this point right now

Many of my neighbors (farmers) called me last year going into the harvest and asked my why all of their charts were showing bottoms. They said price CAN'T go up into harvest.

They've relied on the fundimentals for ever but found that they needed something else to hang their hat on.

The markets will do whatever they want to do and we need to read price direction and strength or these markets will leave us in their dust.