March 20, 2019
I think Cotton, Wheat, Corn and Soybeans are all in varying stages of trying to lift off…that we have had the last selloff, and though I may be dead wrong, I think we are going to see nothing but UP from all of them for the next 3-4 months..
I would point out that markets often grind a bit off the lows…not attracting much attention…then suddenly shift into a totally different and SHARPLY higher gear…
Here is a very recent example of what I am talking about…It doesn’t mean these four markets will erupt the same way (or up at all) but this IS how the markets DO often move…Nothing is happening…One last low washes out any last trace of bullish opinion…AND THEN THEY GO…And yes, I am long the Lean Hogs but this is a futures trade only...African Swine Fever in China is the catalyst here..
Compare the Hog market to what the row crops are looking like…
I cannot emphasize enough how important it is to establish positions BEFORE the action starts…Options are MUCH cheaper and offer much more leverage when a market “has been doing nothing.”
Give me a call and let’s get SOMETHING on here…
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Corn, Wheat, Cotton, Soybeans