Overnight, March Corn was up 1 ¼ cents at $4.00 even.  The included chart continues to show that March Corn is still stuck inside the $3.75 to $4.25 trading range and that all trading within is just noise.  What I would be looking for now would be for March Corn to trade in a progressively tighter and tighter range in what I call a coil.  If that happens, then we will be set up for a sharp move on the eventual breakout.  For now, hold the ratio call spread.

 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 58 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.