June 26, 2024

 New Lows AGAIN…

Corn and Soybeans staging downside breakouts…

The latest nonsensical reason for bullish ag analysts still endlessly supposing that the grains are bottoming here, “soon” or “somewhere,” stems from the crop damage that might be happening with the flooding now taking place in the northern Midwest…And quite naturally, they are dismayed by Corn and Soybeans continuing to make new lows…including today.

My take on flooding has always been that, even though there are certainly SOME acres that get lost to floods, by its very nature, those losses are ONLY going to be occurring along riverbanks and ONLY in some locations. So, when you see those videos of entire riverbank cities and surrounding fields under water, you have to understand that you are STILL only looking at a miniscule percent of total USA farm acreage…and that more importantly, if you do have flooding in some areas, it is highly likely that everywhere else, that isn’t flooded, is almost certainly getting rain more rain than farmers could ever wish for…thereby resulting in bigger and bigger, and better yields across the entire Midwest…as, yeah, RAIN MAKES GRAIN…It really does.

There IS no shortage of Corn or Soybeans whatsoever…and buyers know it…and are therefore NOT in any hurry to buy…while on the other hand, you’d better believe there are a million USA farmers who are, I swear, just beginning to panic as they watch big dollars disappear in the still unsold record stocks of product sitting in their bins…And I keep repeating this…ALL OF THAT UNSOLD CORN AND SOYBEANS REPRESENT MASSIVE SELLING THAT WILL BE RELENTLESSLY HITTING THE MARKET IN THE COMING MONTHS…NOT TO MENTION ALL THE SELLING THAT WILL ALSO BE COMING AS THE CURRENT CROP GROWS IN THE FIELDS.

I CONTINUE TO RECOMMEND SHORTING BOTH OF THESE MARKETS…RIGHT HERE, RIGHT NOW. I believe that the non-stop almost unanimous bullish advice from ag analysts during the past two years...during which we actually have been in a 2 YEAR BEAR MARKET…has presented a situation that could end VERY badly for farmers…by which I mean, with all the selling of both old crop and new crop that HAS to sold, prices could get even worse than I am currently projecting…

 Stop just watching this unfold…Contact me and do something with it…

 And if you’re already on it, I see these last new BREAKOUT lows as a signal to add to your position.

 Can’t do it for you…Call me!

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