Last week I mentioned that higher corn prices should not surprise anyone in my post Bake Sale?
Now, it seems that Corn is limit up for the second day in a row. Yikes!
This probably excites new traders and many probably have their calculators out figuring how much they could have made. But run ups in prices end poorly and you may see the first sell off Limit Down once truer numbers on the yield come in.
I’d prefer you use options in environments like these. If the market reverses, you can calculate your max loss at the moment you put the trade on.