We knew a day of reckoning would come.
No civilization can go on piling up trillion-dollar assets while printing money like there's no tomorrow.
We can't ignore these inescapable realities anymore.
I encourage you to join my historic series of online video briefings with Weiss Ratings founder Dr. Martin Weiss next week.
Click here now to learn more about these all-important briefings for free.
I don't know about you, but I am busier than a one-toothed man in a corn-on-the-cob eating contest. So, I'll keep this brief.
If you listened to me in December, you could have made a bushel of money. Luckily, I think you have another great chance.
And I'll give you some recommendations on where to start your research.
This opportunity reminds me of a song in the musical Oklahoma, "Oh, What a Beautiful Morning."
You might remember its lyrics go:
"The corn is as high as an elephant's eye,
An' it looks like it's climbin' clear up to the sky."
- If I haven't given you enough hints, I'm talking about corn — or rather, profits on corn.
In my Dec. 21 column, I told you how corn was poised for its regular, seasonal rally. But…
- That was BEFORE Russia invaded Ukraine. Both countries are corn exporters (Ukraine more so) and ain't nobody in Ukraine going to work the fields as Russian tanks roll across the countryside.
According to European news on Ukraine:
"From mined roads and unexploded ordnance to frozen corpses lying in fields and shortages of diesel and plant treatments, all … is threatening this year's spring planting."
"Ukraine President Volodymyr Zelensky is urging farmers to sow as many fields as possible to protect the food supply. But several of the nation's largest agribusinesses say some plantings just won't happen if Russia continues its war in Europe's breadbasket."
- Ukraine accounts for 16% of global corn exports (and 12% of wheat exports).
Even if Russia can export its corn and wheat despite sanctions, the loss of much of Ukraine's corn crop is going to have global impact.
It takes time for that to work through the system. It sure doesn't look priced in at this point.
- And that means that you, as an investor, have time to act.
I recommend checking out the Teucrium Corn Fund (CORN).
It's an exchange-traded product (ETP) that provides investors an easy way to gain exposure to the price of corn futures.
I recommended CORN on Dec. 21. You can see how it has performed since:
CORN has rallied 18.2% since my recommendation.
Importantly, it seems to be forming a "bull flag" right now. The saying on Wall Street goes, "flags fly at half-mast."
- Measuring from the low on Nov. 26, that gives us a target of $34.73 as a minimum target.
That's a heck of a nice move.
That's the trade. Buy corn.
If I didn't convince you in December, or if you're not convinced by what's going on in Europe's breadbasket now, you can sit this one out.
The rest of us, though, will be targeting corn profits as high as an elephant's eye.
Always remember to conduct your own due diligence before buying anything.
Best wishes,
Sean
