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Senior Contributor

OptionEye...June 14th

Good morning.


Looks like corn could be set for another weekly drop as this weather looks better and the bullish news has come to a halt.


Lots of put buyers still in Dec corn and a few straddle sellers of the $5.00 strike as that is where a lot of big institutional traders think that Dec corn could make a run at.


Beans are the star this morning, up 4 to 9, wheat is down 4 to 5 and corn is down 1 to up 4 in front.


As far as the macros go, we had a decoupling of our equities with the melt down in Japan yesterday. After a 6.40% sell off in Japan, our stocks posted great gains even after Europe had followed the far east lower. Today we may take a breather as it feels like a lot of folks will be watching the golf. Decent economic news this morning with PPI and Industrial Production. They will be helpful in giving us another window into what the FED may be thinking with its taper plans and any interest rate hikes.


I think they are two very different things. Taking away stimulus and raising rates aren't the same. The bond market is way ahead of itself (as markets often do) and I think you could see 10 year rates back below 2.00% sometime soon. Today it's at 2.11%.


Other than that, feels kind of quiet so far. Good luck and have a great weekend.


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2 Replies
Honored Advisor

Re: OptionEye...June 14th

Some think that the bullish news is just starting..................................

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Re: OptionEye...June 14th


Seen anything interesting in the wheat implied vol surface over the last few weeks? How is it looking to you now vs historical/normal for this time of year?

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