Based upon these assumptions it’s my opinion that corn prices will eventually move upward and likely trade well above $9.00. I’m certainly not alone with this opinion. For example, there have been some very large traders, purchasing very large quantities of the December corn $9.00 calls, the $9.40 calls and the March corn $10.80 calls. I’m not talking about a few hundred of these calls being purchased, but several thousand. The current break in prices, with today’s session low at $8.12, 37 cents off the highs, should be considered an opportunity to establish long term bullish option strategies. For example, we’ve been establishing a few December corn 850/950 call spreads for around 27 cents. Another, more aggressive strategy has been establishing the December 840/940 call spreads, while also selling the 780 puts. We’ve been establishing these positions at a very small premium outlay of around 1 to 2 cents. This strategy is more aggressive in that holding the short put requires margin capital and could pin a trader with a long position at $7.80. If the above assumptions are correct, I consider this event rather unlikely between now and December option expiration on November 23rd.

From a risk management perspective, if the December corn contract ever closes below $7.95, the above positions should be unwound, as it would appear that major, long term highs might be in place.

So if you ddn't invest in corn futures..shame on you..time to make some money..