The WASDE increased ending stocks to 903 million bushels for 2011-2012 corn, up from 851 previously. The USDA has the July Corn yield at 146.0 and cut demand over 1 billion bushels. It is important to note what the yield is as of July 1 for the USDA. One can make the argument that since July 1 we have lost more bushels and we are probably closer to a 140 yield now. Continue reading "WASDE Review and Yield Scenarios for Corn & Soybeans"→
The corn trade has been incredibly complicated as of late. The situation is one that projects both the most bullish and bearish of set ups, simultaneously. So what is anyone involved in the grain trade supposed to do? What do we focus on going forward that will project prices higher or lower? If market participants or advisors look closely, they will see a Jekyll and Hyde type market that doesn’t come around that often.
Tight Supply and 95 million Acres
Corn futures are now an environment with a two-tiered structure. On one hand, we have the old crop, or cash corn market (grain that is in the bin or would be ready for use immediately). This market is showing bullish characteristics with a historically tight supply on hand. The one factor, beyond all things, that triggers me as a buyer of cash or front month corn futures is the strong basis being reported in Decatur, IL (heart of corn belt) and in the Gulf of Mexico where the export terminals are. As of today, those basis levels are as strong as we have seen in recent times. Continue reading "The Game Plan for Investing in Today's Corn Market"→
We published this trading rule on our blog almost 8 months ago, February 10 to be exact. You can look it up if you wish. With gold making all time highs on Friday, it seems like the perfect candidate for this rule. Just remember, there are no guarantees in trading and you want gold to close at or near its highs for the day.
I learned this rule over 3 decades ago in the markets from a low-key trader named Bill. Using his special trading technique, Bill made millions and millions of dollars from his office. The best part is that this technique is still working more than 30 years after it was taught to me and why I insist on sharing it with as many traders as possible.
Today we are going to take a look at MarketClub's World Cup Portfolio (formerly World Commodity Portfolio) that has been tracking six markets for the past three years. I think it is fair to say that the last 36 months have presented one of the most challenging trading environments in recent memory.
So how do we do it?
I put together this very short video which is only 1 minute 45 seconds long and gives you all the information that you need to decide whether or not this approach is one that could work for you. Bear in mind that the World Cup Portfolio is a leveraged portfolio unlike our "Perfect Portfolio" which is not leveraged.