Corn Higher On Possible Trade AgreementCorn futures in the March contract is currently trading higher by 5 cents at 3.77 a bushel up about 1.55% reversing the sharp losses that we witnessed in yesterday’s trade as price’s hit a 3 month low.
However, President Trump announced today that a possible trade agreement with China could be at a hand pushing prices higher.
One very bullish fact is that the USMCA agreement looks to be at hand in the coming months ahead as Mexico is our largest importer of U.S corn in the world as we need some bullish fundamental news to push prices higher in my opinion.
Heading into 2020 I think the commodity markets will surge to the upside as they are certainly depressed especially compared to how strong the U.S economy is and if you take a look at the equity market they have hit another all-time high in today’s trade as President Trump I believe will continue to inflate all asset classes in the coming years ahead.
If you are a farmer I certainly would not be selling at these price levels as demand will come back for this product in the coming months ahead as I want to play this to the upside as the downside is very limited in my opinion.I am will be looking at a possible bullish position if prices break the 4 week high which was created on December 3rd at 3.85 while then placing the stop loss under the contract low which was hit on September 9th at 3.65 as the risk would be around $0.20 or $1,000 per contract plus slippage and commission.
This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com