Petricca’s Pick 12/21/2023

CORN BELT: DRIEST IN A LIFETIME!

 

Bryce Anderson one of most prolific agricultural meteorologists in the world and someone the trade watches closely, released an article the other day that I thought I would share with you.

 

He now reports that almost all of Iowa, eastern Nebraska and Kansas, southeastern South Dakota, southern Minnesota, southwestern Wisconsin, and northern Missouri have precipitation deficits of 20 inches or more during the past four years.

 

 

The real problem is Iowa, the number one producer of corn and the number two producer of soybeans in the U.S.

 

Mr. Anderson reports that –

 

The 48 month Iowa statewide precipitation total calculated by NCEI (NOAA National Centers for Environmental Information) is 113..72 inches. That’s a whopping 27.52 inches below the 1991/2020 mean precipitation value of 141.24 inches. It’s also the eighth-driest four stretch in a total of 125 four-year periods on record going back to 1895.

The driest such period on record was back in December 1954 to November 1958 – 65 to almost 70 years ago.

 

Along with Iowa –

 

Major precipitation deficits are widespread across the western corn and soybean belt.  Drought Maps displaying precipitation totals relative to normal show large blocks of deep red from eastern Kansas and eastern Nebraska eastward to southwestern Wisconsin; this includes close to the entirety of Iowa.

 

While no one knows what Mother Nature has in store for U.S. Producers this coming growing season clients and subscribers should understand weather trends…

 

The National Weather Service’s 90-day forecast is certainly fascinating!

 

 

 

While the 90-day forecast does in fact call for above normal temperatures in the main corn and soybean belt, precipitation looks to be “equal chances.”

 

Believe me – Equal chances ain’t gonna cut it this year. If we don’t get the needed widespread, consistent, timely soaker this summer, the corn and soybean complex could provide an exciting/profitable year for the more astute Long-Term trader!

 

My letters have been specific…

 

I’m accumulating corn, wheat, oat and soybean oil futures as these markets are in fact within my lower 25% parameter. Please call for Long-Term charts and details regarding my Long- Term Strategies. 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,

 

Wishing all of you a wonderful Holiday season and a happy and healthy New Year.

 

Best

Frank

 

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