Growing up I swore to myself that I never wanted to be a rancher or
farmer -- moving irrigation pipe, caring for cattle, bucking bales of
hay -- needless to say the work was strenuous.
But the older I get, the more I find myself yearning for the
back-breaking work and solitude that comes with the gig. Luckily, I
still have a close connection to it. Growing up in a tiny village in the
northwest, ranching and farming is -- next to mining -- probably the
largest employer. And my father keeps a pulse on the agriculture
business, as it directly affects his business.
So I do my best to pick his brain about happenings in the
agricultural business. And when we recently talked I was particularly
interested in what was going on in the corn and wheat sectors. What he
told me was exactly what I wanted to hear...
Right now, there's a ton of supply in the corn and wheat markets. Thanks to exceptional growing conditions this year.
In its most recent report, the United States Department of
Agriculture (USDA) announced corn production came in at a record-high
14.5 billion bushels. And this is how it's been all year... This news
has caused corn prices to plummet:
It was this freefall that caught my attention. That's because I think
conditions are ripe for a rebound in both corn and wheat prices --
especially for corn. And it's all thanks to an aspect of commodities
investing that I doubt many investors know about. But if you can grasp
the idea, you'll make a killing. (more)
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