Theoretical Positions: Traders are likely on the sidelines given the market’s contra-seasonal downtrend and continued backwardation of its forward curve (see below). Seasonal Analysis: Seasonally, the spot-month WTI contracts tends [...]
Theoretical Positions: 2024 needs might’ve been covered based on the change in long-term trend at the end of June 2023 (see Monthly Analysis). The spot-month contract was priced near $2.41. [...]
Theoretical Positions: Based on previous low implied volatility readings, put options have likely been bought. Implied volatility has since increased with June showing 14.9% at Friday’s close. Given this, cash [...]
Theoretical Positions: Cash sales could continue to be made. Implied volatility was low at Friday’s close with May showing 14.4%. At the money May $285 puts closed Friday at $6.25. [...]
Theoretical Positions: Cash hogs could continue to be sold. Technically, the secondary (intermediate-term) trend looks to be down, in line with seasonal studies (see below). Seasonal Analysis: June lean hogs [...]
Theoretical Positions: It’s possible some sales of Nov25 were made as the contract took out its previous 4-week low of $10.3725 (possible sale of $10.37). Nov25 closed last Friday at [...]
Theoretical Positions: End users looking to get coverage in place could’ve bought December 2024 futures near the weekly close of $315.70 (week of August 26). Winter quarter (remaining Dec, Jan [...]
Theoretical Positions: 2024 production has likely been sold at this point. Initial sales of new-crop could be made near the recent weekly close of $641.50 based on the completion of [...]
Theoretical Positions: Producers: 2024 production should be sold at this point. Attention has likely turned to the new-crop December 2025 contract. Dec tends tor rally from the last weekly close [...]
Theoretical Positions: Producers might’ve locked in a small part of expected 2025 production near the recent weekly close of $6.3375. (Realistically, I know how difficult this is to do.) Given [...]
Theoretical Positions: The July issue could've been sold near the recent weekly close of $6.17 with a stop above $6.3350. The July 2025 issue closed last Friday at $5.4275. Seasonal [...]
Theoretical Positions: Attention will be turning to opportunities in the new-crop market, starting with the September 2025 futures contract. The Sept25 issue closed last Friday at $6.325 putting it the [...]
Theoretical Positions: Investors (See Monthly Analysis) Hedgers Dec25 short futures hedges These positions could’ve been bought back near the weekly close of $4.3875 (week of August 26) And could now [...]
Theoretical Positions: End-users: Fall 2024 (roughly 3 months, or September/October/November) needs could’ve been covered near the weekly settlement for the National Corn Index of $3.6850 (Dec24 futures at $4.01) the [...]
Theoretical Positions: Traders are likely long cash, futures, and Exchange Traded Funds (ETFs). While funds continue to liquidate their net-long futures position, hedgers (both long and short) will continue to [...]
Theoretical Positions: Traders are likely on the sidelines given the market’s contra-seasonal downtrend and continued backwardation of its forward curve (see below). However, buy orders could be above the previous [...]
Theoretical Positions: 2024 needs might’ve been covered based on the change in long-term trend at the end of June 2023 (see Monthly Analysis). The spot-month contract was priced near $2.41. [...]
Theoretical Positions: The July issue could be sold near the recent weekly close of $6.17 with a stop above $6.3350. The July 2025 issue closed last Friday at $5.7450. Fundamentals: [...]
Theoretical Positions: Producers might’ve locked in a small part of expected 2025 production near the recent weekly close of $6.3375. (Realistically, I know how difficult this is to do.) Given [...]
Theoretical Positions: Attention will be turning to opportunities in the new-crop market, starting with the September 2025 futures contract. The Sept25 issue closed last Friday at $6.325 putting it the [...]
Theoretical Positions: It’s possible some sales of Nov25 were made as the contract took out its previous 4-week low of $10.3725 (possible sale of $10.37). Nov25 closed last Friday at [...]
Theoretical Positions: End users looking to get coverage in place could’ve bought December 2024 futures near the weekly close of $315.70 (week of August 26). Winter quarter (remaining Dec, Jan [...]
Theoretical Positions: 2024 production has likely been sold at this point. Initial sales of new-crop could be made near the recent weekly close of $641.50 based on the completion of [...]
Theoretical Positions: Based on previous low implied volatility readings, put options have likely been bought. Implied volatility has since jumped, with June showing 15.7% at Friday's close. This is a [...]
Theoretical Positions: Cash sales could continue to be made. Implied volatility was moderate at Friday's close with May showing 16%. At the money May $285 puts closed Friday at $7.425. [...]
