Sorry, I missed by 4 cents lol.
Beans just fell OUT of bed today. We got confirmation of sales to China. All the lemmings got long. And we’re 60 cents off our highs in ONE DAY. High 1516 low 1459.
Corn could NOT take out 1552. If its does, look out below.
All farmers are bullish. Barely any have sold anything forward. This is the first year in 3 years we might get a painful, cleansing sell off.
I hope I am wrong. I hope we will get a chance to sell grain higher. But right now, I think its going to take a drought or another act of God to get CZ back to the 6.00 level.
Stock Market likes to test the 14,000 level. For now, the money flow continues to be INTO stocks. If that trend was to stop, we’d be looking at a 1500 point nose dive quicker than you can say “holy cow’.
The livestock market has shown us how dependent the markets are on money flow. Barclay’s withdrawal from commodities. A major commodity firm blowing out this week.. And we have seen Feeder cattle crash 16 bucks. This in the face of a pretty bullish fundamental picture. We have the smallest herd since 1948. Somewhere down the line the public is going to want to grill hamburgers and steak. There won’t be enough cattle then. But trying to pick the bottom has been a dangerous speculation.
The calls I recommended, thankfully, I was able to pull out a small profit or a push. When I sold 153 calls against the 150 calls, that was just about the last train out.
Have a great weekend.
CER