March 21, 2019
China, the world’s biggest consumer of just about everything…in numbers that can dwarf everyone else…has become a major factor in the pork market…African Swine Fever throughout China has resulted in massive hog slaughter there…leading to the fact that they will need to import pork, or the hogs themselves, from the USA…which has lit a blazing fire in our Lean Hog futures…
I have been long futures here since March 4 (every trade I make does not get covered in this newsletter…especially as this trade can only be made, I believe, using futures contracts, NOT options) and am STILL long…but that is not my point here…THE POINT IS, I THINK THAT ALL FOUR OF THE ROW CROPS (COTTON, CORN, WHEAT, SOYBEANS) VERY MUCH RESEMBLE HOGS A MONTH AGO…just dragging along around the lows, doing nothing…AND THAT ANY ONE, OR ALL FOUR OF THEM CAN BE ON THE VERGE OF TAKING OFF IN VERY MUCH THE SAME FASHION AS YOU SEE ON THE FIRST CHART BELOW.
CHINA IS, AND WILL BE, A FACTOR IN CORN, COTTON, SOYBEANS AND WHEAT…AND I REMAIN CONVINCED THAT THEY HAVE BEEN QUIETLY BUYING ALL OF THESE COMMODITIES VIA THE FUTURES MARKET…IN BIG NUMBERS…AND THAT SOONER, RATHER THAN LATER, ALL FOUR OF THE MARKETS WILL BEGIN ERUPTING, SIMILAR TO THE HOGS, ON THE UPSIDE.
I am telling you, I have never seen advisors and analysts so resolutely bearish the row crops as a whole…and if you think ALL of these “experts” being bearish, IS bearish, I would also tell you that you understand nothing about the way this game actually is played. This IS a mob psychology game and the “mob” is ALL on one side of the ag markets…
I CONTINUE TO LOUDLY URGE YOU TO BUY UNITS OF ONE CALL OPTION EACH…IN COTTON, CORN, WHEAT AND SOYBEANS. HERE AND NOW.
I really can’t say more…except…If you think what I have been writing, and showing you, does makes sense, DON’T JUST SIT THERE AND WATCH IT HAPPEN…
Give me a call and get the numbers…Right now, about 5K will get you solidly in all 4 markets…
Here are the charts…through today’s close…ALL still point north…
DO note what Hogs looked like a month ago…and then what Cotton, Corn, Wheat and Soybeans look like right now…and that 3 of the 4 made solid new recent highs today…
NO telling what we’ll see tomorrow…and more than that, where we’ll be on Monday…So if you DO think this is worth the risk, pick up the phone and call me tomorrow.
Can’t say it any more strongly…
All charts are from Aspen Graphics
All option prices in this newsletter include all fees and commissions.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Cotton, Corn, Wheat, Soybeans