Grains 02 (Jan 14 - Dec 24)

Re: Grains 02 (Jan 14 - Dec 15)

Postby winston » Thu Jan 07, 2016 9:25 pm

Wheat prices fall 25% since July.
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Re: Grains 02 (Jan 14 - Dec 15)

Postby winston » Wed Feb 24, 2016 10:15 am

A perfect low-risk trade for today’s market

by Dr. Steve Sjuggerud

The iPath Bloomberg Grains Total Return Fund (JJG). JJG is an exchange-traded note that tracks the prices of just three grains: corn, soybeans, and wheat.


Source: True Wealth

http://thecrux.com/sjuggerud-this-trade ... tup-today/
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Re: Grains 02 (Jan 14 - Dec 15)

Postby winston » Wed Apr 27, 2016 7:41 am

China grain surplus reaches record peak but official warns surpluses cannot be guaranteed

Twelve years of rising output could change suddenly, official warns

Source: SCMP

http://www.scmp.com/news/china/policies ... cial-warns
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Re: Grains 02 (Jan 14 - Dec 15)

Postby winston » Fri Jun 03, 2016 7:30 pm

No Room in U.S. Grain Silos Means Dumping Wheat in Parking Lots

by Jeff Wilson

Global glut sends exports to 34-year low as output set to rise
Before harvest, bins hold more leftovers and price is falling

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... rking-lots
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Re: Grains 02 (Jan 14 - Dec 15)

Postby winston » Mon Jun 06, 2016 9:09 pm

Soybean

Soybean meal and soybeans have the strongest returns of any commodity on the Bloomberg index this year.

Futures for the agricultural products used in livestock feed and cooking oil are up 58 percent and 33 percent, respectively, as floods reduce crops in South America and concern mounts that dry weather will cut U.S. output.

Source: Bloomberg
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Re: Grains 02 (Jan 14 - Dec 16)

Postby winston » Thu Jun 09, 2016 8:39 pm

The Two Elements of a Great Trade

By Dr. Steve Sjuggerud

"Picture this for a moment..." I wrote in the latest issue of my True Wealth newsletter...

Picture me at a cocktail party, trying to tell people... "I'm so excited! I'm buying grains! You know – soybeans, wheat, and corn? They're SOOO cheap! The timing is great!"

Sounds ridiculous to say that, right? It's all true about the opportunity in grains... but nobody cares.
Yes, it sounds silly to talk about buying grains as an investment at a cocktail party these days...

But that is the point...

For the biggest gains, you MUST consider buying what nobody else is interested in. But that's not all you need. Today, I'll show you the two elements you want to see as the perfect setup for a great trade...

My issue of True Wealth published on May 20. Grains are up more than 10% in the 12 trading days since that issue came out.

My True Wealth subscribers are up much more than that...

I actually recommended buying the iPath Bloomberg Grains Total Return Fund (JJG) in February. JJG is basically a fund that holds three grains: wheat, soybeans, and corn.

We timed the bottom pretty darn well... JJG fell from more than $60 in late 2012 to less than $30 this past March. Take a look:

JJG was in free fall... So what did we see back then to make us buy?

What I wrote in the February issue summarized it...

Prices for agricultural crops have been falling fast. The price of wheat, for example, is down roughly 50% since 2012. The other big "grains" – corn and soybeans – have fallen even farther.

Speculators have been piling on this downtrend... The bets against the price of wheat have hit all-time record levels among commodity traders.

U.S. farmers are so paralyzed by these lower prices, they are afraid to plant. Why plant something that you will lose money on when you harvest it?

We have record fear in wheat – with no supply coming from U.S. farmers, and record bets against the price of wheat. Corn and soybeans are in similar positions, though not as extreme.

Ah, but what's this? We are starting to see a divergence between sentiment and price action.

Even though fear is high in the "grains," prices are actually up since the start of this year – in a world where everything else is down.

The outlook is bad... and yet prices are up this year. This is exactly what we want to see.
There you have it: The outlook was bad, yet prices were up.

That's what you want to see.

When the divergence between sentiment and price action appears... bingo! You have the two elements together that you want to see in a perfect trade setup.

Our grains trade is just one example...

We bought JJG at around $30 in True Wealth. And we'll sell at around $40. We've only been in the trade a couple of months, but JJG is already up to $37... So it has been a great trade.

The grains trade is just one example of using this simple little "system." In short, you want to buy what's uncomfortable to buy. You want to buy when the outlook is bad, and everyone is ignoring it... but meanwhile, the price has quietly started to go up.

When you find that setup... take advantage of it!

Source: Daily Wealth
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Re: Grains 02 (Jan 14 - Dec 16)

Postby winston » Wed Aug 17, 2016 10:37 am

A Bigger Story Than Gold

By Karim Rahemtulla

Source: The Non-Dollar Report

http://nondollarreport.com/2016/08/agri ... ?src=email
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Boredom Strikes! 05 (Jul 11 - Dec 16)

Postby behappyalways » Sat Sep 24, 2016 4:43 pm

the-nut-that-helped-to-build-a-global-empire
http://www.bbc.com/future/story/2016092 ... bal-empire
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Re: Grains 02 (Jan 14 - Dec 16)

Postby winston » Wed Sep 28, 2016 8:21 pm

The Bear Market Nobody Is Talking About

By Matt Badiali

It's useful. It's food. It's fuel. It's used to make plastics, which can turn into a ton of useful products.

And it keeps getting cheaper.

Plus, it just entered the fourth year of a bear market. But that's giving investors an opportunity today. Let me explain…

Take a look at the chart below, which shows the price of a group of corn futures…

Please Enable Images to See this

Corn prices recently hit their lowest level in 10 years, down more than 60% from their 2012 highs.

The problem is that corn farmers are getting too efficient. Over the last four years, corn acreage has fallen 9%. But the corn crop increased 36% over the same time frame – from 10 billion bushels to 13.6 billion bushels.

As a result, prices keep falling. That's good for consumers and farmers who raise poultry, beef, and pork.

But food makers are also making a killing. Companies like Tyson Foods (TSN) and PepsiCo (PEP) use corn to make everything from sweeteners to alcohol. Nearly 500 million bushels of corn were used last year to make high fructose corn syrup. Other sweeteners consumed another 300 million bushels of corn in 2015.

While corn prices have fallen steadily since 2012, Tyson Foods shares are up from less than $15 per share to more than $75 over the same period – a 400% gain. PepsiCo – which also owns snack company Frito-Lay – is up more than 70% over the same period.

If corn prices continue to stay cheap or fall even further from here, shares of both Tyson and PepsiCo will move higher.

But corn is a cyclical commodity, just like oil or gold. All it will take is a drought or some other problem and we could see corn prices rocket higher. In that case, the Teucrium Corn Fund (CORN) will be a profitable speculation.

We're keeping a close eye on corn prices… I suggest you do the same.

Source: Stansberry Resource Report
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Re: Grains 02 (Jan 14 - Dec 16)

Postby winston » Sat Oct 01, 2016 2:40 am

Chinese corn worrying markets

China is the world's No. 2 producer of corn, so its decision to allow state-owned companies to start exporting is worrying international commodities markets.

China has not exported corn in a decade, but now has a massive surplus and prices have slumped more than 20 percent in the past year.

Source: Reuters

http://www.reuters.com/article/us-china ... s%20Select
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