Agriculture Looking Fertile for Second Quarter-Minyanville

Agriculture Looking Fertile for Second Quarter

Cody Tafel Mar 31, 2009 3:25 pm

Agriculture Looking Fertile for Second Quarter


		A first-quarter recap and a look to the future.

One of the calls I had right in the first quarter was to buy the agricultural commodities on pullbacks. I still think this will be a great asset class to have exposure to in 2009. I said to buy corn on pullbacks to the 350 level, and the low for the first quarter ended up being 342. Close enough for government work right? I continue to like corn in the mid $300s, and I think we'll see a $500 handle on corn before the end of the year.

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The other agricultural commodity I recommended purchasing on pullbacks was soybeans. I said to buy them in the mid to low $800’s, and the low for the first quarter was 838.5. Like corn, I think soybeans have significant upside potential here and I would not be surprised to see soybeans above $1200 later this year. I would continue to add on pullbacks towards the 200 week moving average.

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Now I must admit I got a little lucky on my TBT call for Q1. I said you could take a shot on the long side in the TBT’s in the mid $30’s, and even if you waited until the uptrend confirmed on a move above $40, you would have some nice profits on this trade.

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Charles Roberts

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03-31-2009, 4:30 pm
Hey Cody, Do you like the PAGG or MOO to play the ag stocks? How about the CGW instead of the PHO for water? (PHO has finally removed GE so maybe it is better now) Thanks! Read More


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