Corn Prices Are Going Crazy And Pig Prices Are Flying
March of 2020 was one of the worst trading times I have ever seen in the markets. Actually, it was the worst as there were multiples times that they shut the stock market down because it fell over 10%. They put the trading limits on to freeze everything for up to 15 minutes at a time.
Last week they froze trading in the price of corn, not because it crashed because it went up too much in a single day. The futures market trading up limits hit. Take a look at the CORN ETF and you can see this day on the chart.
Of course, the prices for corn futures have been going up since August of last year. The price of beef and pigs also is flying. Check out the COW ETF that tracks meat futures prices.
COW hit a new high just yesterday. These rising prices are telling us that inflation is coming soon to the grocery store.
And the thing is, this isn’t just a move of a week, but when you look at a long-term chart of the agriculture commodity ETF DBA, which I own, you can see it’s part of a major secular low that was made last year.
DBA and commodities as a whole went into a bear market in 2011. Gold and silver made major secular lows back in 2016, but it didn’t happen for agriculture commodities and oil until last year.
That was a major secular low for the commodity complex made last year after a nine-year bear market that sets it up for a new bull market that will last for years.
We always are forced to focus on the daily market moves, because they are the action of the day and what you see when you look at a price quote, but when you look at the big picture shown on the charts this is a trend that is going to be one of the most important ones of the next decade, and people haven’t even noticed it yet.
The action in CORN and COW, though, says that they will soon – this Spring – at the grocery store.