Commodity ETF Alert July 2012 Sell Alert: CORN

| July 6, 2012 | 0 Comments

July 6, 2012



US crop fears are deepening…

Growing conditions are deteriorating quickly as unusually warm weather bakes the US heartland.  High temperatures, mixed with a severe lack of moisture, have corn prices setting new 2012 highs.

Take a look…



As you can see, June was a remarkable month for corn prices as yield uncertainty gripped the market.  If rain doesn’t come soon, we could see prices rise even further in July.

But here’s the deal…

Weather based commodity trades can turn on a dime.  If the Midwestern US gets a good drenching (and for farmers’ sake I hope it does), we’ll see corn prices come right back down.

And that brings me to our trade in CORN…

As you know, we bought the Teucrium Commodity Trust Corn Fund (CORN) in our April issue for $39.41.  But now that corn prices have surged, CORN is trading near our profit target of $46.00… a sweet gain of 15% from our entry price.

We could hold on a bit longer to see if corn prices continue rising, but I don’t think it’s worth the risk.  We’ve made a remarkable trade and I don’t want to see our solid profits in this trade slip away.

So let’s play it safe and take our profits in CORN!

Congratulations on a great trade!

What To Do Now:

  • SELL the Teucrium Commodity Trust Corn Fund (CORN)


Category: Commodity Trading

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.