Time Frames For Buying December Corn Futures

Time Frames For Buying December Corn Futures
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The latest commentary on the recently released jobs report from John Payne, Senior Futures & Options Broker with Daniels Trading in Chicago.

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Q1 2021 hedge fund letters, conferences and more

April's Jobs Report: A Huge Miss

"Payrolls data was just released, and it was a huge miss. Traders were expecting nearly 1 million jobs created, and we got 267k. Something is afoot. The good news for bulls is that this kind of data gives the FOMC the green light to keep policy easy. This is also bullish commodities."

Fund Manager Profile: Kris Sidial Of Tail Risk Fund Ambrus Group

invest Southpoint CapitalA decade ago, no one talked about tail risk hedge funds, which were a minuscule niche of the market. However, today many large investors, including pension funds and other institutions, have mandates that require the inclusion of tail risk protection. In a recent interview with ValueWalk, Kris Sidial of tail risk fund Ambrus Group, a Read More

"We are back in a world (2009-2012) where good economic news is going to spook folks in risk assets into believing the cost of capital is going up and/or the possibility this infrastructure package is not needed. So, if you are bullish tech stocks and crypto, you are in the camp that is rooting for bad data."

"Treasury Secretary Janet Yellen will give a press conference with the White House press secretary today at 11:30 a.m. EST. I don't think it matters much for grains and oilseeds, but macro-driven risk markets should react as they did a few days back if Yellen would mention anything about interest rate hikes."

"USDA WASDE will be released next week. Given the parabolic nature of the Dec. 21 corn markets, producers and novice board users (experts as well) should be looking at puts. Obviously the news flow is bullish, weather is supportive and momentum is up. But the USDA has been known to pull rabbits out of its hat, and no one should be shocked if they do it again this time. Nothing they do must make sense."

Strategies For December Corn Futures

"There are two strategies I would look at as a novice, a put or a put spread. If you are more sophisticated and/or open to more risk there are many more. But lets focus just on the strategies you can put on and walk away without any fear of margin call. These strategies apply for all markets, but I just focus on corn."

"The CME offers different time frames for December corn futures for folks who do not wish to buy as much time, through Short Dated New crop options. These exist in beans and wheat as well. Remember, these options are basically insurance contracts on price. Just like in any insurance contract, you pay more for more time."

"Drought remains a concern out west. Producers in the Ohio and Tennessee River Valleys are dealing with too much rain and planting delays are starting to concern. This is where early soybeans would come from."

"With December corn carving through 6 and new crop 2022 through 5, Dec 2021 and Dec 2022 cotton are cheap. I think you must be buying calls or outright spec longs given the weather."

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)www.valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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