A critical creative look at issues of Economics, Politics and Finding a Purpose in Life - Let's talk about it. I try to leave the woodpile higher than I found it.
Thursday, July 19, 2012
Closed Circuit for my trader friends. John Garfield and others. There is a historic opportunity in the Futures market. Corn and Beans are currently Dec Corn 7.72 Jan Beans 16.31. That's a ratio of 2.11 corn to beans. Historically this is an average of 2.3 YET, the corn crop is some worse than people think but late rains will fill the pods in the bean crop. Better than we think. I believe that Short one bean, long two corn in the storage months is a good safe bet. I think there can be two dollars in there to sink back to $13 in the beans. That is a pretty good profit. One could do it with options but not make quite as much money. Here is a trader's view in April before the crop was in. He was right on the beans then...but now... I think he will be upside down. http://peterlbrandt.com/special-report-buy-soybeans-sell-corn-04-13-2011/
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