About The Author

Frank Petricca

Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.

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Petricca’s Pick 01/16/2024

By On January 16, 2024 - 8:43 AM · In Market Commentaries, Petricca’s Pick

CORN LIQUIDATION

COFFEE UPDATE

 

My December 22nd 2023 post was specific recommending corn accumulation as corn futures were in fact in the lower 25% of the Long-Term trading range and my Long-Term trend following formula was up. Positions were established at $4.72.Last Friday all positions were liquidated at $4.51 as my trend following formula turned down. Total loss: $1,050.00 per 1 contract.

 

As many of you know –

 

The soybean and grain complex collapsed Friday as the USDA’s supply/demand report was a bearish surprise.  All of a sudden, in January of 2024, long after harvest the USDA found an additional 2.4 bushels an acre for 2023/2024 corn yield which translates to a new record of 177.3 bushels an acre. The final U.S. 2023/2024 production estimate is now a robust 4.127 billion bushels.

 

I continue to hold long Soybean oil, oat and wheat positions.

 

My September 6th, 2023, post was also specific recommending coffee accumulation as coffee futures were in fact in the lower 25% of the Long-Term trading range. Accumulation started at $153.00. Today coffee futures are trading $185.65. Total Profits: $12,800.00 per 1 contract. Those of you that called and established coffee positions should continue to HOLD positions.

 

Recent strength points to –

 

  • India’s 2024 exports could rise 10% to 298,000 tons.
  • European buyers are now paying a premium for Indian beans.
  • Untimely rains, labour scarcity delaying harvesting.

 

“The demand for Indian coffee, particularly robusta beans, is strong due to firm global prices resulting from production issues,” said Ramesh Rajah, president of the Coffee Exporters Association of India, predicting a significant in exports this year.

 

Clients and subscribers should also know that Robusta coffee is trading near its highest level in at least 15 years as Vietnam, the worlds biggest producer, is expected to produce less in 2023/2024 than the precious season.           

 

My Long-Term objective for coffee futures is the upper 25% of the Long-Term trading range which is the $240.00 level or higher.

 

Those of you that have an interest in learning more about my strategies should call me personally. 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.        
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