May 31, 2024

 SOLID DOWN WEEK IN CORN AND SOYBEANS

And

NEXT WEEK COULD BE BIGGER…

Both Corn and Soybeans ARE in bear markets…with every analyst I’ve seen STILL continuing to talk about “the bottom,” and “the next support level”, or “the potential for dry weather this summer,” etc…with NOBODY even coming close to suggesting they could drop even 5-10% from here...much less the 20-30% that I am expecting.

I am sure any number of farmers, still holding massive stocks of both markets…and still waiting for the mythical bull market rally that analysts galore KEEP jabbering about…MUST be a bit worried by Corn having unexpectedly dropped about 20 cents this week, while Soybeans tanked 43 cents…And as I keep repeating, that “worry” WILL inspire more…and more…and more Corn and Soybean cash market FARMER SELLING.

BOTH MARKETS FINISHED WITH DEAD LOW CLOSES TODAY AND FOR THE WEEK…and maybe it’s wishful thinking on my part (it’s not)…but BOTH MARKETS HAVE A LOOK THAT DEFINITELY IMPLIES THE POSSIBILITY OF GAP LOWER OPENINGS SUNDAY NIGHT…OR BEING SHARPLY LOWER BY THE BEGINNING OF MONDAY MORNING AS AT LEAST SOME NUMBER OF ANXIOUS FARMERS CONTACT THEIR ELEVATORS THIS WEEKEND TO GET CASH SALES DONE And if we DO get something like that, aside from the fact that I am already EXTREMELY BEARISH Corn and Soybeans, I WOULD VIEW THAT SORT OF ACTION AS A STRONG CONFIRMATION THAT THE COLLAPSE I AM ANTICIPATING IS FULLY UNDERWAY…AND READY TO ACCELERATE LOWER.

We’ll see…

I continue to firmly recommend getting short both of these markets…And if you are already short, absolutely recommend adding to your position.

Here are my recommendations based on today’s closes…which may or may not be different by the time we reopen Sunday night…

And if you think $3.50 Corn seems out of the question, just be aware that in the 7 years prior to the recent 2021-2022 bull market, the annual lows in Corn were:

2014 - $3.26

2015 - $3.52

2016 - $3.11

2017 - $3.11

2018 - $3.34

2019 - $3.41

2020 - $3.06

The point is, do NOT make the mistake of thinking, “There’s no way that Corn is going to $3.50.” And the truth is, I actually think it could easily come VERY close to the $3.00 mark. As I keep saying…because it’s true: The markets ALWAYS go much further than anyone ever thinks they can/will.

And I absolutely recommend doing this in “units” of 1 Corn Put and 1 Soybean Put…currently being about $2128 per pair.

Hope you’ll contact me and get a piece of this…Doesn’t mean I’ll be right, but I personally see this as being about as high probability as it ever gets…

770-425-7241

866-578-1001

All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB.

 The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Corn, Soybeans