Okay, I'm long Corn. Based on my current trading style, I'm probably long, flat, long again -- it's going to breakout! -- no I'm selling, there is a correction coming. In any case, I'm smoking the long agriculture trade. And it smells good, shall we say. What is there not to like? People need to eat, as do pigs and normal cow types (grass-fed types taste horrible and are not long for this world), and the dollar is going down. Corn, being denominated in dollar terms, will go up when the dollar goes down by simple default. If the dollar is worth less, then Corn must be worth more.Think of it this way. You want to trade apples to my corn and all of sudden your apples got smaller because of some Willy Wonka shrinking machine. Well, guess what? I need more of your small apples, please, to buy my corn.
Of course, the lower dollar is not the only part of this thesis. There is the demand for corn issue as well. And the fact that China needs to drop beef futures with higher Corn prices so it can buy its "quote" -- future beef -- at discounted prices.
Eventually, Corn will come in. But for now, we must smoke. Yee Haw, indeed.
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