Watchlist

Corn

Corn has seen a reasonably bearish WASDE report on Wednesday and as new crops continue to develop we have a historically bearish seasonal window.

This one's been bouncing off a traditional support level around -26 and it might prove to be a decent entry. Old crop supplies are somewhat tight however with a large crop forecast this spread still has some decent potential especially coming off such a low base.

History suggests we're able to risk $400 per contract.


Natural Gas

While I'm not ready to jump in just yet I've really been watching this one closely. There is nothing fundamentally bullish about NG in the short term. The NOAA forecast is reasonably average which leads me to believe there won't be any heating or cooling demand in the immediate future.

Storage came in with a net injection of 95 BCF which was in-line with expectations.

Ideally I'd like to try and work as close to 0.2 as we can so I'll be keeping an eye on this one. There are a few spreads in NG that we can use with most running until the mid July.

This one says we need to risk around $1200 per contract which seems quite high to me. NG is somewhat liquid and slow moving. It might be worth checking the ATR of a few of the spreads and getting a better risk/reward.