by Jack » Tue 22 Apr 2008, 01:50:39
$this->bbcode_second_pass_quote('Gandalf_the_White', 'A')re any of you guys buying this? How concerned should we be?
No, I don't buy it. I doubt there is any need for concern.
Take a look at the futures quotes for corn, wheat, and rice. Rice is the only one that's at the highs. July corn is at 5.92, down from 6.20. July Wheat is at 8.52, down from $12.40. Such price action diverges from the type of shortages being discussed.
If there were shortages, expect the prices to lock limit up day, after day, after day. We're simply not seeing it. If you don't care to follow the futures market, follow DBA, an ETF consisting of 25% each of corn, wheat, soybeans, and sugar. It's about where it was in January after an earlier runup. As if that weren't enough, it's below its 50 day moving average, MACD looks as if it's turning negative, and stochastics look as if they're headed lower after being overbought. Translated: prices look as if they're headed lower, not higher.
Don't worry. Be happy. Buy ammo. Not necessarily in that order.
