$WEAT, CORN and SOYB I posted this elsewhere in
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Posted On: 06/15/2019 6:35:24 PM
$WEAT, CORN and SOYB
I posted this elsewhere in response to bio>>>>>
bio, I believe the grains are grossly under priced for three reasons
1. Oil starred falling in 2014 and it is still relatively low, even though higher than 2016. Grain production is somewhat energy intensive.
https://www.finviz.com/futures_charts.ashx?t=CL&p=m1
2. A major US drought ended in 2013 as well as the grains topped out, and perfect weather last year in grain country. And we all know tops and bottoms often go too far. If you can't see July 24, 2012 on my link, move the left chart to it>>>>>
https://droughtmonitor.unl.edu/Maps/CompareTwoWeeks.aspx
3. Trumps tariffs. It sounded like Soy was the biggest victim, but wheat and corn have not done much better. Many stories of farmers going BK.
Now flooding is an issue, if mid section USA rains continue, another problem. I see Indianapolis has 5 inches of rain forecast the next 10 days, they average 4.13 inches for the whole month of June and they have already had 1.94 inches. This is reason for crops to go up and they have, but not much. I don't think the worst is factored in.
https://www.wunderground.com/forecast/us/in/i...ate/2019-6
There are funds for each of the three grains, they might be a good buy and hold now, even with the recent gains?
Corn
https://www.finviz.com/futures_charts.ashx?t=ZC&p=m1
fund>>
https://stockcharts.com/h-sc/ui?s=CORN&p=...5806916781
Wheat
https://www.finviz.com/futures_charts.ashx?t=ZW&p=m1
Fund>>>
https://stockcharts.com/h-sc/ui?s=WEAT&p=...4605538975
Soy
https://www.finviz.com/futures_charts.ashx?t=ZS&p=m1
Fund>>>
https://stockcharts.com/h-sc/ui?s=SOYB&p=...0242597154
I do hold RJA(been a loser for me), that has 50% in the three grains, and I bought SOYB last year in early July, thought the tariffs would end soon, lol, but you got me thinking and will add SOYB Monday.
I posted this elsewhere in response to bio>>>>>
bio, I believe the grains are grossly under priced for three reasons
1. Oil starred falling in 2014 and it is still relatively low, even though higher than 2016. Grain production is somewhat energy intensive.
https://www.finviz.com/futures_charts.ashx?t=CL&p=m1
2. A major US drought ended in 2013 as well as the grains topped out, and perfect weather last year in grain country. And we all know tops and bottoms often go too far. If you can't see July 24, 2012 on my link, move the left chart to it>>>>>
https://droughtmonitor.unl.edu/Maps/CompareTwoWeeks.aspx
3. Trumps tariffs. It sounded like Soy was the biggest victim, but wheat and corn have not done much better. Many stories of farmers going BK.
Now flooding is an issue, if mid section USA rains continue, another problem. I see Indianapolis has 5 inches of rain forecast the next 10 days, they average 4.13 inches for the whole month of June and they have already had 1.94 inches. This is reason for crops to go up and they have, but not much. I don't think the worst is factored in.
https://www.wunderground.com/forecast/us/in/i...ate/2019-6
There are funds for each of the three grains, they might be a good buy and hold now, even with the recent gains?
Corn
https://www.finviz.com/futures_charts.ashx?t=ZC&p=m1
fund>>
https://stockcharts.com/h-sc/ui?s=CORN&p=...5806916781
Wheat
https://www.finviz.com/futures_charts.ashx?t=ZW&p=m1
Fund>>>
https://stockcharts.com/h-sc/ui?s=WEAT&p=...4605538975
Soy
https://www.finviz.com/futures_charts.ashx?t=ZS&p=m1
Fund>>>
https://stockcharts.com/h-sc/ui?s=SOYB&p=...0242597154
I do hold RJA(been a loser for me), that has 50% in the three grains, and I bought SOYB last year in early July, thought the tariffs would end soon, lol, but you got me thinking and will add SOYB Monday.
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