Momentum Call
Sell Corn going into harvest. Sell it hand over fist. Look like Eddie Murphy. I realize I am late to this game, but go ahead and sell it. I have a suspicion that Brown's elevators will not be empty this year. If you want to hedge buy cattle.
"We all movin on up in da world like elevators, Me and the crew we pimps like Tony, Tony, Tone" - Outkast
"We all movin on up in da world like elevators, Me and the crew we pimps like Tony, Tony, Tone" - Outkast
posted by MattKelly54 at
9:36 AM
2 Comments:
Honest question: Why cattle? Why not cotton or soybeans or any of the other crops that have been crowded out by ridiculous corn planting?
Also, won't planting corn in places like cotton fields negatively impact yields? Shouldn't this help to temper corn prices at least a little bit?
I'm not disagreeing with you, by the way. All of the corn talk over the last year or so has had me thinking one word: "bubble". I'm thinking of pairing corn with cotton or soybeans should I choose to get involved.
No. Honestly I did not know anything about this when I wrote this. It was gut feel. But it was also B.S. Corn was limit down on Friday. It was limit down on Monday.
I am not selling corn. Because I now know some new information. 1) That I could not have sold corn before because it was limit down 2)Nitrogen is in allocation due to heavy demand 3) La Nina could be devastating to the corn crop 4) Honey Bees are dieing at a super fast rate.
I thought Cattle was a good hedge because I think it is a solid momentum play due to other nations opening back up exports from the United States. Feed being expensive due to crops, although this is somewhat mitigated by the by distiller grain by product from ethanol.
I use to want to buy cotton but I was scared because it is normally highly correlated to the economy, and China and India are large growers, and i do not think that I understand anything about those economies. But because the rumor is that corn acreage is a multiple of past years, I think that cotton could be an amazing speculation as Le Silverado has told me.
I have dollars burning a whole in my pocket because the federal government is about to take 1/3 of my risk capital made from buying puts of Fremont Bank which I have not hedged so when it runs back up to 10 tomorrow this discussion will be irrelavent.
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