Are the ‘Ags’ warming up for a summer rally?
Hard Assets Investor (HAI) highlights bullish moves on positive USDA data.
Corn prices spiked 9% on Wednesday and Wheat was up 6%:
What prompted the hitherto slumping corn market to race upward? Two things really, but they both begin with “USDA.” The Agriculture Department’s quarterly stocks report came in 400 million bushels under expectations, enough to make some observers wonder if there’ll actually be enough old crop supply.
Then there’s the USDA planting intentions report, which gives clues about newer crops. Intentions were downgraded by a million acres from the March report. Whether or not the shift away from corn planting actually takes place is uncertain, but traders took both USDA reports to heart, er, to their wallets, yesterday.
Note the Teucrium Corn ETF (CORN) gives exposure, to yes, corn. We’d be curious to know if readers had opinions on the product.
With corn now buoyed by bullish sentiment, money flows into the ETF ought to improve. There’s still a lot of work needed to consolidate corn’s gains, but at least domestic investors now have a security product that delivers pure corn exposure.
Here are the related charts:
Charts via Finviz.