A little over a week ago, December corn had reached a new contract high at $7.80. The market Had broken out from a congestion area between $7.25 and $7.30. We have slid back towards $7.30 as we approach Monday's USDA supply/demand and crop production report. Markets often times break down a bit into harvest and this likely explains the drop. Most private forecasters are predicting lower estimates than last month's report. Each cent for corn = $50 as it is a 5000 bushel contract and there are also mini corn contracts (1000) bushels where each cent is $10. Margin for the full size is $2300 and $460 for the mini.
The Trade : Buy a December corn at market currently $7.35
The Stop: Place a sell stop at $7.24 $550 from $7.35 to the stop $110 for the mini
Objective: At least $7.60 to $7.80 25 cents is $1250 and 45 cents is $2250