July 8, 2024

At 1.00 PM EST

NEW LOWS TODAY IN CORN – DOWN 18 CENTS

NEW LOWS IN SOYBEANS – DOWN 30 CENTS

FARMERS, RIGHTFULLY SO, MAY BE STARTING TO FREAK OUT…

I BELIEVE THE STAGE IS SET FOR 4-6 WEEKS OF PANICKED, MASSIVE SELLING,

WHILE BUYERS JUST SIT ON THEIR HANDS.

 
As of the June 28^th USDA report, Farmers were shown to be holding over 3 Billion Bushels of Corn on June 1^st, which, for perspective, is the equivalent of 600,000 futures contracts. While they certainly have done some selling since June1, I am virtually certain they only put a small dent in that record high number.

In Soybeans, they were holding 466 Million Bushels on June 1^st, which may seem small comparatively, but with Soybeans trading at almost 3 times the price of Corn, the dollar values are about the same.

Both of those numbers are records for this time of year…In other words, in spite of the fact both markets have been in two year bear markets, with the seemingly unanimous bullish sentiment that professional ag analysts have been expressing virtually all the way down, bullish farmers have therefore been holding on to their crops in hopes of the next “big rally” to sell in to, or even the “next leg up in this bull market,” the end result being that “holding on” has already cost them a ton of money…More importantly, however, is what I believe is coming next…which is the absolute COLLAPSE  in prices, where panicking farmers (with good reason) DO START SELLING EN MASSE…and as I keep repeating, WE SEE BOTH OF THESE MARKETS GO DOWN FURTHER THAN ANY OF THOSE WRONGWAY ANALYSTS, AND FARMERS ALONG WITH THEM, WOULD EVER THINK POSSIBLE.

Yeah…I have been on this short trade for a long time, and you’ve heard everything I write here over and over, but one more time: I am absolutely of the old hand opinion that BOTH BULL AND BEAR MARKETS ALWAYS GO FURTHER THAN ANYONE IS EXPECTING…and it will be no different this time.

I CONTINUE TO RECOMMEND GETTING SHORT HERE…I STILL SEE CORN CLOSE TO $3.00 AND SOYBEANS CLOSE TO $9.00….

 Call if you want to get on board with 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