August 13, 2024 

Corn and Soybeans

It is NOT too late to get on…

BOTH MARKETS ARE MAKING NEW LOWS…AGAIN.

I have zero doubt that 100% of the Corn and Soybean farmers in the USA…with perennially wrong-way-bullish-ag-analysts influencing them to have stored their Corn and Soybeans in record quantities…and now having watched MILLIONS of dollars disappear in the bins…ARE ALL NOW INTO FULL BORE FREAK OUT SELLING MODE…and with Soybeans being this week’s leader, both markets have entered their FINAL LEG DOWN…which typically is as big, fast and straight down as any market ever gets.

I mean, put yourself in their position…In 2023, you spent all that time, and a lot money, in producing your Corn and Soybean crop last summer and fall…then, with the “experts” forecasting higher prices, you stored it all…and waited for prices to rise…and then they did exactly the opposite…In fact, Last fall, you could have sold 5000 bushels of Soybeans (or 1 futures contract) for around $70,000…but if you stored it? Today it’s about $47,500…or $22,500 that has EVAPORATED…and we’re only talking about ONE LOAD OF SOYBEANS…among millions…And with the percentages being the same in Corn, my point is, there DOES come a moment in time…after losing, and losing, and losing…when all those farmer DO just start selling, and selling and selling…and the market just feeds on itself…and you DO get the sort of absolute price collapses that have taken place for decades in the grain markets…

And THAT IS PRECISELY WHAT I THINK IS HAPPENING NOW IN BOTH OF THESE MARKETS…And again, it’s nothing new…just human nature…Yup…As I’ve said a 1000 times--- MOB PSYCHOLOGY DETERMINING WHERE PRICES GO.

SOYBEANS

Most of my clients remain short, but generally speaking, we are not adding to our long held short positions…excepting a few more aggressive accounts (like my own).

BUT CORN IS A DIFFERENT STORY…

I AM ABSOLUTELY STILL ENTERING NEW SHORT POSITIONS…RIGHT HERE, RIGHT NOW.

I like this option at today’s close…

And this…

I’ve kept saying it…and I mean it…It’s NOT too late to get on this…

Call if you’re interested,

Thanks,

Bill

770-425-7241

866-578-1001

All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB.

The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Soybeans, Corn