Overnight, March Corn was up ¾ cent at $4.05 ½ per bushel.  The included chart shows that the $3.75 to $4.25 trading range continues and all the trading inside that range is just noise.  As I have said before, we need to be patient and watch for either a break out of the range, or a tightening of the range into what I call a coil for the build up for a large move.  For now, we will just hold our current ratio call spread position and enjoy the holidays.  Most commodities close at noon today.

 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 57 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.