Timing is Everything !
On May 3rd 2019, we made a strategic call to BUY SOFT COMMODITIES highlighting their long term and short term depressed stage and the massive short positions accumulated in that space by hedge funds and producers.
Over the past month, soft commodities have skyrocketed, increasing by 15 to 28 % depending on the case as extremely unusual rains in the America Middle West has delayed the planting season considerably, endangering the 2019 supply.
The charts below show the performances of the commodities that we had recommended
Corn
Corn prices shot up 28 % since we recommended them and are now overbought.
TAKE PROFITS SHORT TERM
The sharp move up is a clear break out of the extended horizontal consolidation process that we highlighted in our May3rd post. LONG TERM BUY
Wheat
Wheat prices increased by 24 % since we recommended to Buy the commodity. It is now overbought and due for a correction. TAKE PROFITS SHORT TERM
The recent move up is a significant part of a long term bottoming process after a 7 year bear market. LONG TERM BUY
Soybeans
Soybeans are taken hostage of the Chinese – US trade negotiations and China has just stopped buying American beans. The grain is up 14 5 since we recommended it open May 3rd 2019
Longer term, Soybean prices are extremely depressed and the recent move is part of a significant bottoming process. LONG TERM BUY
Coffee
Coffee is not affected by the bad weather of the US middle West but the Bear market in Coffee had gone on for way too long. A Clear bottom has been made but a short term correction is probably on the cards.
TAKE PROFITS SHORT TERM
We see the latest move as part of a clear bottoming out process after the 5 year bear market
LONG TERM BUY
Sugar
Sugar has not performed as well as grains and coffee but nevertheless, the long term bear market in sugar is coming to an end.
Recent Comments