Consider Corn Call Spread on Planting Delays
By Phil Streible
Wet weather has delayed corn planting this season, and the effects are likely to be felt as the growing season progresses if farmers can’t get enough in the ground in time. Consider the December corn $5/$6 call spread as a long-term bullish play. We are at a critical juncture in terms of planting and I see potential for prices to increase in corn. If corn doesn’t get in the ground by this weekend, the effects of the delay will expose the crop to excess heat later in the summer at a time it hasn’t developed enough to resist it. Into harvest, farmers may be facing frost. The later the corn gets in the ground, the more vulnerable the crop is to problems. We could see farmers switch to soybeans, which can be planted later.
Feel free to contact me with any questions you have about the markets, or to discuss a customized trading strategy to suit your particular account size and risk tolerance. Ask about our half-off commissions offer for new clients.
Phillip Streible is a Senior Market Strategist with Lind Plus. He can be reached at 800-803-8037 or via email at pstreible@lind-waldock.com.
Past performance is not necessarily indicative of future trading results.Futures trading involves substantial risk of loss and is not be suitable for all investors.
© 2009 MF Global Ltd. All Rights Reserved. Futures Brokers, Commodity Brokers and Online Futures Trading. 141 West Jackson Boulevard, Suite 1400-A, Chicago, IL 60604.
