By SIMON CONSTABLE
THE PRICE OF CORN COULD SOAR TO $8 A BUSHEL, A LEVEL NOT SEEN SINCE 2012, and more than double last Thursday’s closing price of $3.895.
An unusual confluence of factors could propel prices higher over the next couple of years. These include declining output, an ethanol-led demand surge in China, and likely brutal weather. “Eight dollars is very possible,” says Shawn Hackett, author of the Hackett Money Flow Report newsletter, who adds that declining supplies will run headlong into increased Chinese demand.
Traders wanting to profit from the rally should consider buying futures for July 2019 delivery. Note: The trading volume of such long-dated futures is significantly lower than for front-month contracts, which makes trading more expensive. Alternatively, consider the Teucrium Corn exchange-traded fund (ticker: CORN), which tracks corn futures. Read more here.
No comments:
Post a Comment