Grains 02 (Jan 14 - Dec 26)

[behappyalways]

Too Much of a Good Thing: China Grain Stores Bursting at the Seams
http://blogs.wsj.com/chinarealtime/2014 ... the-seams/

[winston]

This Commodity Is Setting Up for a 30% Rally By Jeff Clark

Corn looks a lot like coffee did almost a year ago.

In January, we told you 2014 may be the year of the coffee trade. The price of coffee was down 67% from its 2011 high. There was little downside risk left. And the chart was turning bullish. We said to look for a 60% rally in coffee prices in 2014 – which would be a huge year for the commodity.

Coffee is now trading 70% higher than where it started the year. It's up 100% from its October bottom. And we made profitable trades on the commodity in January and June.

Today, we might have a similar setup in corn.

Take a look…

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As you can see, the price of corn peaked in 2012 at just over $8 per bushel. It dropped to a new low of $3.45 last Thursday before bouncing a bit on Friday.

The blue lines on the chart show a well-defined downward trading channel. If corn breaks above the resistance line of the channel – at about $4.50 – we can expect a new bull market for the commodity. But we can profit on corn – even in a downtrend – by buying it at support and then selling it at resistance.

Right now, corn is sitting on its support line at $3.50. And there's strong positive divergence on the Moving Average Convergence Divergence (MACD) momentum indicator (at the bottom of the chart). This setup usually leads to a good bounce.

Traders can buy corn here and then look to sell it at a bounce back up to its resistance line. That would be a gain of almost 30%. Even if corn doesn't make a move as strong as coffee, the downside risk is low.

The easiest way to buy corn is with the Teucrium Commodity Trust Corn Fund (CORN) – an exchange- traded fund designed to track the price of corn.

If we get a good bounce from here, corn could rally 30% within the next few months.

www.growthstockwire.com

[winston]

U.S. crop prices are collapsing… corn, wheat, and soy prices plunge to fresh 4-year lows.

[winston]

Corn and soybeans are the two worst-performing commodities in the market over the past 12 months… both are down 25%-plus.

[winston]

This Commodity Is Heading for a Bounce By Brian Weepie

There's a big opportunity setting up for commodities investors…

Thanks to mild weather and plenty of rain, the U.S. is expecting the largest corn crop it has ever seen.

But good news for corn supply is bad news for corn prices… The price of the commodity has fallen around 20% this year. And many expect it to keep falling.

While corn prices may be set to fall in the short term, a boom is just around the corner. And investors are about to have a great chance to get in…

As regular Growth Stock Wire readers know, commodities like corn are tremendously cyclical. They go through huge cycles of boom and bust.

For example, from mid-2010 to mid-2012, corn prices rose more than 120%.

Demand for corn was rising, thanks in part to the increased use of ethanol in gasoline.

And poor weather in 2011 and 2012 meant demand was outpacing supply. As a result, corn prices soared to their highest levels ever in 2012… to more than $8.40 per bushel.

To take advantage of higher prices, farmers started planting more and more corn. So much that now, supply is outpacing demand… causing corn to enter "bust" mode.

At around $3.30 per bushel today, the price of corn has fallen more than 60% since its 2012 high.

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It now costs more to grow corn than it's worth in the market.

According to Brent Baker, a corn farmer and commodity broker at John Stewart and Associates, the breakeven cost for growing corn right now is $4.25 per bushel. At below $4 per bushel today, farmers are losing money.

That's why Brent says there will be a major shift from growing corn to growing soybeans next year.

This is great news for contrarian investors…

As I said earlier, commodities like corn are tremendously cyclical. And the best time to invest in commodities is when everyone hates them.

After the market leaves a commodity for dead, things often get better. With farmers switching to soybeans next year, the supply of corn will drop.

But we'll still need corn next year. Many of the items we use every day are made with corn – including medications, food, candy, textiles, and ethanol. As corn supply drops and demand holds steady (and even increases), prices will boom.

In the meantime, Brent says based on current market information, his firm believes corn prices could fall to as low as $3.00 per bushel in the weeks ahead.

You see, in mid to late October, the market will know what kind of corn yields the northern part of the "Corn Belt" region will have.

And Brent thinks they'll beat expectations.

Brent says the land he farms in the area is running 110 bushels to the acre above its 10-year average. This blows away his previous best year. As more good news about the corn supply comes in, corn prices will likely fall further.

That will be when we see the bottom in corn prices. And it's when contrarian investors should look to invest.

The easiest way to buy corn is with the Teucrium Commodity Trust Corn Fund (CORN) – an exchange-traded fund designed to track the price of corn.

Corn is setting up for a rally. And investors are about to have a great opportunity to get in. Don't miss it.

Source: www.growthstockwire.com

[winston]

This chart says one essential commodity is officially "dirt cheap"

An ounce of gold is worth the most bushels of corn in at least four decades, signaling the grain is “dirt cheap,” according to AgriVisor LLC.

The CHART OF THE DAY shows one ounce of gold buys more than 370 bushels of corn, the most since the data for U.S. trading begins in 1975.

Source: Bloomberg

http://thecrux.com/must-see-chart-says- ... 37gMXBU%3D

[winston]

Corn prices are sitting at a five-year low… as U.S. farmers expect a record crop this year.

[winston]

Corn is trying to break out of a long downtrend… prices are up 8% since the start of the month.

[winston]

Crop prices are trying to start a new uptrend… corn, wheat, and soybean prices are all sitting at or near one-month highs.

[winston]

"Grains" fund JJG is up 8% since the start of October.