Petricca’s Pick 12/11/2023

BUY MAY CORN

 

May corn futures are in fact within my lower 25% parameter and my Long-Term trend following methodology is up. Long-Term Corn accumulation is now recommended. May corn futures are presently trading $4.97 per bushel.

 

 

While the trade sees nothing but bearish for corn futures due to ending stocks now reported to be 2.131 billion bushels the highest carryout in six years, and world ending stocks now expected at 315.2 mmt, higher than trade expectations in terms of of last week’s USDA’s Crop Production and World Supply and demand report…

 

In my mind…

 

Corn futures could be an exciting Long-Term proposition for the more astute Long-Term trader with a visionary attitude that’s necessary when any investment endeavor is contemplated.

It’s called value investing…

And in my opinion corn futures are extremely undervalued due to bullish Long-Term factors that one needs to anticipate in order have success trading commodities…

 

My vision points to –

 

Corn Ending Stock, while higher this year, are still at dangerously low. Any weather hick-up anywhere in the world could propel corn prices sharply higher quickly.

 

 

Speaking of weather hic-ups –

 

This past week CONAB lowered its Brazil total corn crop estimate to 118.5288 million tons from 119.066 million due to unfavorable weather this growing season.

 

Brazilian total corn acreage is expected to decrease by 5% to 52 million acres, according to CONAB. The 2023/2024 corn crop is projected to be down to 4,701 million bushels, a 9.5%drop from last season, reflecting a smaller planted area and the initial effects of the El Nino weather pattern.

 

Speaking of weather patterns –

 

Just look at last week’s drought monitor…

 

The heart of the corn belt is rated severe, extreme or exceptional in terms of drought intensity.

 

 

While conditions can certainly change in the coming months the trend for now is clear!

 

Those of you that have an interest in corn accumulation should call me for entry levels and Money Management Strategies that are so important when one makes an investment of this nature. 312-690-7763.

 

Remember there are four important components regarding my strategies…

 

1. Positions are established only in the upper or lower 25% of the Long-Term trading range.
2. Positions are established only when my trend following methodology is up or down within that 25% parameter.
3. Positions are held until positions reach the opposite extreme high or low. (The upper or lower 25% of the Long-Term trading range).
4. Correct money management strategies must be implemented.

 

There is no question that more that 90% of commodity investors lose money…

 

And it’s true that my strategies also incur drawdowns…

 

But – What I offer is a way to be “in the market” when major commodity moves occur.

 

My strategies require one to maintain –

 

• Patience
• Commitment
• Vision
• Discipline

 

Those of you that have an interest in additional details regarding my strategies should call me personally. 312-690-7763.

Would love to hear from you.

 

In the meantime,

 

Have a great year trading!

 

Best

Frank

Questions? Ask Frank Petricca today at 312-690-7763.