Grains 02 (Jan 14 - Dec 26)

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Corn price falls on record crop forecast

Corn futures fall after US government predicts another record crop

By Steve Rothwell

Source: Associated Press

https://sg.finance.yahoo.com/news/corn- ... nance.html

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Food prices shift back into a downtrend… corn and wheat prices break down to three-month lows.

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Corn and wheat prices break down to three-month lows.

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Corn Nears Bear Market on Outlook for Biggest Harvest

Corn traded on the cusp of a bear market near the lowest level in almost six months as investors weighed the outlook for the development of a record crop in the U.S., the world’s largest producer and exporter.

http://www.bloomberg.com/news/2014-07-0 ... rvest.html

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Corn prices fall to their lowest level since 2010.

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Crop prices plunge… corn and soybean prices fall 25% over the past three months.

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Crop prices break down… corn and soybean prices plunge 26%-plus over the past three months.

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An ugly downtrend for farmers… corn, soybean, and wheat prices plunge 25%-plus in just three months.

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Corn Retreats as U.S. Crop Seen Climbing to All-Time High

By Phoebe Sedgman

Corn dropped for the first time this week after a government report showed output in the U.S., the world’s top producer, will reach a record.

Futures tumbled 18 percent in the past year on speculation a second bumper U.S. crop will boost global stockpiles.

Domestic production is set to climb to 14.032 billion bushels, the USDA said yesterday. While that’s below the 14.25 billion bushels predicted in a Bloomberg survey, it would still be the highest on record. About 73 percent of U.S. corn is in good or excellent condition, USDA data show.

“The crop is looking great, it’s almost ideal,” Michael Pitts, commodity sales director at National Australia Bank Ltd., said by phone from Sydney. “There’s not really much that can be done now that will negatively impact corn, we’re almost done and ready for harvest.”

The USDA said corn yields may be 167.4 bushels an acre, up from 165.3 bushels predicted in July and compared with 170.2 bushels in a Bloomberg survey. World inventories at the end of 2014-2015 may total 187.82 million metric tons, down from 188.05 million tons forecast last month and 192.43 million tons forecast by analysts. It will still be the highest since 2000.

Source: Bloomberg

http://www.bloomberg.com/news/2014-08-1 ... -high.html

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The Amazing Crash and Opportunity in Two "Critical Assets" By Dr. Steve Sjuggerud

Since June 27, the prices of two "critical assets" have fallen 13% (on average).

And since May 8 – just nine weeks ago – these assets have both lost over a quarter of their value!

While many assets around the world have been hitting new highs this year, these two assets are hitting lows not seen since 2010.

These "critical assets" are not risky dot-com companies. Instead, they're essential to our way of life today. We don't go a single day of our lives without them.

These assets were in a similar situation four years ago. EVERYONE believed there was no chance they could go up… And then they absolutely soared soon after!

When I say "absolutely soared," I mean it… Both of these assets more than doubled from their 2010 lows – in less than a year!

So what are these "critical assets"?

I'm talking about corn and wheat. (Please hear me out on these… and let me show you an easy way to buy them in your regular brokerage account.)

In 2012, we had a massive drought. The corn crop was small. And corn prices hit all-time highs.

Today, we're in the opposite situation… The weather has been absolutely perfect. So the supply of corn will be massive.

The prices of corn and wheat are significantly influenced by supply and demand. It's Economics 101… When there's a ton of supply, the price crashes. And when there's more demand than supply, the price soars. Right now, there's a ton of supply.

So the price of corn has been in freefall. Take a look:

With corn in freefall, how could I possibly think corn prices could go up from here?

Here's the important point: Everyone has given up on corn. And all of the news about the perfect weather is already factored into the price of corn. In short, the news can't get any worse for corn prices.

Investor sentiment in corn recently hit its lowest level in eight years. The last time public opinion was even close to this low was in late 2009 – two weeks before the bottom in the price of corn. The corn price then soared 150% in less than two years.

Things can't get much worse for the price of corn. At some point, things will have to get "less bad." And you REALLY want to be in a position to profit when that day arrives…

It's not just the corn market…

The price of wheat has also been clobbered as well. The story with wheat is exactly the same as it is with corn – perfect weather has led to a massive supply.

Just like with corn, at some point, things will have to get "less bad" for wheat. And that's when we'll see big gains.

Look, I don't know much about crops… I am not a farmer. I don't anxiously await the next USDA report. I don't even know how much corn or wheat is in a "bushel."

But I have learned to make money from extremes… I know that the biggest gains happen when things go from "bad" to "less bad."

The more extreme the "bad," the better. And right now, we are darn close to an extreme "bad" in corn and wheat prices.

I can't tell you exactly when we'll see the actual bottom… But we should be very close to it now.

There's a "one-click" way to get exposure to these grains – through the iPath Dow Jones-UBS Grains Subindex Total Return Fund (JJG).

JJG is an exchange-traded note (ETN) that tracks the prices of just three commodities: corn, soybeans, and wheat.

In the last issue of my True Wealth newsletter, I recommended buying shares of JJG, with a tight stop-loss of $36.19. So if you place this trade today, you are getting in with very limited downside risk, and significant upside potential, based on history.

Source: www.dailywealth.com