And that forecast was put together before the biblical drenching the Midwest suffered in the past week, when another 12 inches of rain flooded already saturated fields.

All this is sending corn futures soaring. Looking at the chart, you can see how corn has gone ballistic. Also, on the bottom of the chart, RSI (a momentum oscillator) has just given a bullish buy signal.

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. 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.
This analysis is brought to you by the Secret Order of Jurojin.

Source: King Corn Retakes the Throne

You can see that corn looks ready to challenge its recent high — and on rising volume, too.

Now for the fundamentals behind this chart. The soil in parts of the country is too cool and wet for corn. This forces corn farmers to replant. Some investors think it will also force farmers to switch to soybeans (which can be planted later than corn), and maybe 10 or even five years ago, it would have. But nowadays, with farm suppliers practicing “just in time” inventories, farmers would have trouble finding the seeds for such a switch.

And too much rain means that farmers have planted only about 10% of the corn crop, compared with 20% at this time a year earlier. Over the past five years, the average for the date has been 35%.

Globally, corn supplies are already straining to meet demand. America is the world’s king of corn. If our crop is going to be light, that puts corn on the launch pad.

You can play corn with an exchange-traded fund: Corn is one-fourth of the holdings of the PowerShares DB Agriculture Fund (DBA:AMEX). The other parts are wheat, soybeans and sugar. But to really ride this agricultural rocket, futures or futures options are the way to go.

Be sure that any trade fits your risk profile, and run ideas past your investment advisor.

Good luck and good trades,

The Secret Order of Jurojin

Editor’s Note: The Secret Order of Jurojin of Taipan Publishing Group