Corn's Perfect Storm

Discussion in 'Commodity Futures' started by marketsurfer, Jun 10, 2008.

  1. Anyone here trade corn? this thing is smoking up. Looks like the perfect storm has hit. Proflogic any thoughts?

  2. ess1096


    Been long July Corn and added a December position today.
    Iowa, Indianna and Illinois are under water.

    Also added a huge DBA position to my IRAs.

  3. Nice, Yeah, that quote from jim stephen's is very telling. sounds like a no lose situation for the longs right now.


  4. Cool, looks unreal to me. stephen's 8/bushel may happen sooner than he thinks.

    the fundamentals are dire, the technicals simply couldn't be more bullish and weather factors are extremely destructive.

    interested to hear what a true AG TA person would say here.... anyone?

  5. Corn is in a world of hurt and I mean that from a price/consumer stand point not a trading stand point.

    Weather is killing what is in the field in the Midwest by drowning it and even if it dries up a bit there won't be time to replant corn. That means the farmers will replant soybeans instead. Thus corn UP, soybeans DOWN.

    In the Midsouth you see the corn drying up in the fields due to the lack of rain.Where I live in the Ohio valley the corn is gorgeous but that doesn't make up for the losses elsewhere.

    Demand has increased as well with the need to supply all of those idiotic ethanol plants.

    We will see pullbacks but there is no top is site yet.
  6. ess1096


    That's exactly what I have been reading. That corn is in it's third attempt (planting) but the cool wet spring is not cooperating. Now with the floods I figure it is too late for a corn crop but not too late to use those corn fields for soybeans.
    If the summer is dry and hot it will only fuel the rally further but soybeans handle dry weather better than corn.
    I am not brave enough to short soybeans here but I am certainly staying long corn and adding (with stops) all the way up.

    Some are saying that corn could trade $7 to $10 if the weather remains a problem.
  7. I'm buying every pullback as long as the target s a new top.

  8. thanks, professor. good to hear thoughts from someone close to the land.

    regards, surf
  9. Daal


    perfect shorting opportunity, tight supply increasing demand, rising chart, non-objectivists fools bullish on it(jim rogers and co), its a short put on the whether so you get to be broke every once and while. what more can you ask for
  10. #10     Jun 10, 2008