We have to predict a major agricultural and financial juncture just ahead.
In all markets, there are inside market forces and outside market forces. What outside forces are affecting physical commodity prices?
Global economic activity remains disappointing, but medicine in the form of another wave of central bank easing, cheaper energy prices and currency exchange windfalls for the weakest areas of the developed world are in place.
The trading strategy of purchasing a deep out-of-the-money call or put option has been referenced as purchasing a “lottery ticket”. Both present an opportunity for profits but with a low rate of success. Depending on how far out-of-the-money the strike price and time remaining until expiration, it would take a considerable move in the underlying futures market to profit.