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Corn prices are near highest levels in four years in China. All from the tense relationships with the country's trading partners. On corn, USDA unexpectedly cut acreage. Still have 17MM acres to plant. Mainly concentrated in midwestern states. As expected, yield, production and carryout estimates were lowered more than most thought.
Volatility
Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report.Notes:
Contract Size - 5,000 bushels (~127 MT)
Tick Size: Cents per bushel. 1/4 of one cent per bushel ($12.50 per contract)
Trading Hours: Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and Monday – Friday, 8:30 a.m. – 1:20 p.m. CT.
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Corn
Below are charts for reference.
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Strategies
Below are illustration of options on futures strategies, a calendar spread. We'll discuss these during our upcoming podcast this week.