Commodity ETF Alert September 2013 Issue
***Editor’s Note*** What you see below is the redesigned monthly Commodity ETF Alert!
As you can see, I’ve included just the information you need to have a solid fundamental understanding of why we’re making this month’s trade. This shorter write-up allows for timelier buy alerts, which will improve portfolio performance in the long run.
You’ll also find a chart, along with the same “What To Do Now” section, which includes essential details for entering each trade.
Going forward, you’ll receive a more detailed report on the fourth Tuesday of each month. At that time, I’ll cover our most recent trade, along with all the open portfolio positions. What’s more, I’ll go into detail on what’s moving all the commodity complexes that particular month.
Best of trading!
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Commodity Outlook: CORN
No doubt about it, the price of corn has plummeted this year. The USDA’s lofty expectations for the 2013 crop have sent the commodity spiraling down to three year lows.
Fact is, we’ve been well served in the Commodity ETF Alert portfolio this year by simply sticking to the sidelines in the corn market.
But now it’s time to step on to the playing field…
The September corn contract is trading at $4.74 a bushel this morning- close to the 52-week low set in August. At first sight, things don’t appear too rosy for this commodity.
But here’s the deal…
Recent USDA crop progress reports reveal there may be a problem coming to the corn market this fall. As of September 8th, 17% of the US corn crop was in poor condition. But more importantly, matured corn is at 9%. That’s well below the five-year average of 28% mature for this time of year.
Folks, it’s time to buy corn…
With matured corn well behind seasonal norms, there’s a quickly growing chance the USDA’s corn yield estimate will be too high. Should we get an early frost in the northern part of the Midwestern US, it will wreak havoc on this year’s crop.
As a result, we may see corn prices jump substantially higher in coming weeks.
This month, we’re using the Teucrium Corn Fund (CORN) to get long the corn market. When corn prices rise, so does the Teucrium Corn Fund!
Technically Speaking:
WHAT TO DO NOW:
The Teucrium Corn Fund (CORN) is trading at $35.41
Buy CORN up to $36.00 per share
Our profit target is $42.00 or more
Category: Commodity Trading
