Waiting For Mr. Potato

It’s hitting the mainstream.

Famine ahead; more specifically, a crisis in corn.

This article just out from ZeroHedge, has the upcoming crop in an almost guaranteed rout before it even gets planted.

Ever since the ‘Derecho‘, corn has been thought (on this site) to be the potential catalyst for market and economic collapse.

The first time that idea was presented was on August 20th, 2020, in this post.

It’s important to note that way back, 17-months ago, it was already understood to be a ‘controlled demolition’.

Crazy conspiracy back then. Looks like a fact, now.

Which brings us to the charts.

CORN: Weekly Chart

As usual, we’ll start with the unmarked chart: Teucrium tracking fund CORN:

It looks like price action is about to break to the upside.

The chart below is marked with some key levels: Support and 38%, and 50% retrace:

For long-time visitors to this site, you can almost write the script for what comes next.

What can make corn drop far enough to get itself below established support and into the ‘spring set-up’ area?

Doing so, may present a medium, to long-term, trade opportunity.

‘Enter, The Potato‘

It’s probably not “if”, but “when”.

What we’re looking for here, is some kind of Jimmy Carter type stunt where corn exports are halted in the name of ‘national security’ or some such thing.

More detail on the Carter grain embargo at this link … scroll down to No. 12

Of course, if that happens, corn is likely to crash (like it did last time) if only temporarily.

More Is Less

A corn embargo means more corn for us, right?

Probably, wrong.

Remember, fertilizer prices are sky-high.

Elevated corn prices (like now) might just cover the cost for the farmers … maybe.

A corn crash in the commodities would likely mean even less corn gets planted … maybe none at all.

Enter, The ‘Bought And Paid For’

It may be that easy (as above), or get complicated because a major consumer of U.S. exported corn, is China.

Exports to China over the last year have literally gone off the scale. Add to that, China is the number two holder of U.S. Debt.

So, one can already see where this may be going.

After the initial fake panic where the politicians realize there’s a crisis (that part being real), which they themselves created, they’ll likely pontificate about halting exports for just long enough, to have farmers throw in the towel with no spring planting.

After all of that, and let’s not forget special investigative news coverage about ‘how all this happened’; blame it on climate change and then keep everything the same.

Exports continue (to China) as much as possible and the U.S. citizens starve … literally.

By the way, go to time stamp 24:04, at this link and look at the clouds in the upper right. For those awake, it’s clear; right angle, cross-hatch pattern.

Right angles are not a natural phenomenon. Whatever climate change there is, is the one being created.

When Corn Takes The Dive

If or when corn takes a hit, price action itself will define the correct trade action.

So, let’s be ready and not surprised, if we see corn in chaos.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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