March Corn is 2 3/4 cents at $3.94 ¼ this morning as I write.  The included chart shows that March corn continues to trade inside of the $3.70 to $4.25 range that has been in place over the past two months.  Eventually, a break out of that range will bring on a sharp move in that particular direction.  Until then, we have to be patient and look for patterns within this trading range that may give us clues for what will happen next.  For now, it seems as if corn is reacting to a stronger dollar rather than its own fundamentals.  We will hold current positions for now.

 Followers of this letter should be long one March Corn ($4.30 strike) call option from 17 ¼ cents and short 2 March Corn ($4.90 strike) call options at 7 3/8 cents each.  (As a result of the profit made on the short $3.20 puts, our cost basis of this ratio spread is now a 1 cent credit!)

There are 63 days left until March options expire.

 With all the price tests above $4.00 recently,  I would hope that the producers have already liquidated most if not all of their corn that needs to be sold.

 David Hall

 The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.