Since the is an absolute dearth of things to do right here, I want to reiterate my call to buy soybean meal (click here for original call).
This morning, the US Dept. of Agriculture USDA released its acreage report showing that planted corn was up 2%, wheat is down 8%, cotton jumped 19%, and soybeans up 2% to 59.3 million acres, an all time high.
My logic here is to pick the crop with the worst news already priced in. If perfect conditions continue, you break even. If they don't, prices soar 30% or more.
This is the kind of risk/reward ratio that I am always searching for. Soybeans are also the most directly affected by a canola crop in Canada that is in big trouble because of torrential rains.
The one year charts of all the ags are starting to draw in a lot of technically driven traders.
If things don't work out, you can always take delivery and eat your position. Try doing this with gold!
The new grain ETF's still isn't out yet, so futures on the CBOT (SM.U10E) are the only pure play.
To learn more about this least understood corner of the financial markets, visit the USDA's well put together website at http://www.usda.gov/ .
It will also show you how to grill hamburgers on the fourth of July without getting sick, a real bonus
Courtesy: Mad Hedge Fund Trader
John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.… More