Corn Prices Hit All-Time High
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Corn prices surged to a record high today following flooding the Midwest.
Reuters reports that “front month July corn on the Chicago Board of Trade rose to a contract high of $7.57-3/4 a bushel, up more than 3.5 percent from Friday’s close, while July 2009 soared to an all-time peak of $8.07.”
Get ready to pay through the nose for food, says Brian Hunt in DailyWealth:
The states of Iowa and Illinois are the world capitals of corn production. Over 27 million acres there are devoted to growing corn. They anchor production for the world’s top corn-exporting nation. All that rain keeps farmers out of the field and damages the crop. Corn soared 11% this week as a result.
The most active corn contract has increased 86% in the past year. Corn is the chief feedstock for cattle, pigs, and chicken. It’s a primary ingredient in soda pop and cereals. To learn just how pervasive corn is in your life, we recommend reading the excellent book, The Omnivore’s Dilemma. Read it and
get ready to pay out the nose for food…
“After this latest rainout, many corn farmers will switch to soybeans, which can be planted until the end of June with less impact on yields,” says Justice Litle. “And that means the corn that does grow will be much more valuable.”
Jurojin already recommended our subscribers go long corn last week — after it bounced higher off of its 50-day moving average. Now, they’re racking up nice open gains, and our first profit target looms dead ahead.
Is it too late to get in on corn? Not by a long shot. We’ve seen this kind of horrible start to the crop year before — in 1993. Then, traders were slow to react to massive flooding.
The best way to play this is corn futures or options on corn futures. If you aren’t in the futures market, you could try the PowerShares DB Agriculture ETF (DBA), which tracks a basket of corn, wheat, soybeans and sugar.
Note: This analysis is brought to you by the Secret Order of Jurojin.