June 20, 2024

The collapse appears to be truly getting started…

Corn down again - 11 cents today - $550 per futures contract

Soybeans down again - 16 cents - $800 per futures contract

With both Corn and Soybeans having a long history of frequently making substantial downside moves between now and September…and with the majority of their top ticks ahead of those declines being made, on average, about RIGHT NOW, my very strong guess is that the next 4 weeks of trade are going to produce fairly enormous moves in both markets.

By the latest count, farmers are still sitting on 800 MILLION BUSHELS OF CORN from last year, or the equivalent of 160,000 futures contracts…Although ALL of that won’t be coming to market between now and fall, generally speaking, farmers DO have to empty their bins to make room for the new crop they’ll begin harvesting come September…IN OTHER WORDS, THEY WILL BE SELLING…AND WITH THEM HOLDING NEAR RECORD QUANTITIES OF CORN, YOU ARE TALKING ABOUT A LOT OF SELLING…AT WHATEVER THE PRICE MAY BE…AND AS I KEEP SAYING…I THINK THEY WILL BE PANIC SELLING DEEPER AND DEEPER IN THE HOLE AS WEEK AFTER WEEK OF “SURPRISING” PRICE DECLINES RESULT IN BIGGER AND BIGGER LOSSES OF THEIR PREVIOUSLY ANTICIPATED INCOME.

 With both markets basically dead on their lows…

which I can only regard as a price “cliff,”

I continue to look for a relatively

STRAIGHT DOWN MOVE DURING THE NEXT 3-6 WEEKS.

 In other words, I think the NEXT LEG DOWN IS JUST GETTING STARTED…meaning that this is the optimal time to either be initiating new positions or adding to existing ones.

Stop just watching. This IS it…in both markets.

Thanks,

Bill

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