Throughout this entire year of 2020, NIA has only announced two option suggestions.
NIA's first option suggestion from March 12th was the iShares Silver Trust (SLV) December 2020 $15 call option at $1.44. NIA was so extremely confident about its SLV call option suggestion that it called this call option a "guaranteed sure way to earn a 500%-1,000% return". Between March 12th and August 10th, SLV rose from $14.62 per share up to a new 7-year high of $27.39 per share, causing NIA's SLV call option suggestion to hit a high of $12.40. This represents a gain of 761.11% in only 5 months, which was right in the middle of the gain that NIA predicted it would make!
In August, NIA's President accumulated 737 Teucrium Corn Fund ETV (CORN) January $13 call options at an average price of $0.63, which represented a bet of $46,000 that corn futures would make big gains between then and January 15, 2021. On August 25th, NIA officially suggested this CORN call option to its members at a price of $0.70. At the time of NIA's August 25th announcement, CORN was trading for $12.53 per share. Since then, CORN has rallied to a closing price yesterday of $14.19 per share and hit an intraday high yesterday of $14.28 per share. When CORN hit its intraday high and new 8-month high yesterday of $14.28 per share, it caused NIA's CORN call option suggestion to hit a new record high of $1.30. This represents a gain of 85.71% in only 2 1/2 months!
NIA members are already making a fortune on NIA's CORN call option suggestion. On August 25th, it had an open interest of 1,844 contracts of which NIA's President owned 40% of them. Within two days of NIA's announcement, the open interest more than tripled to 5,668 contracts. Today, the open interest is up to 9,605 contracts. There are 45 days left before expiration and we believe CORN will rise much higher by January 15th!
In the USDA's September WASDE report, it estimated that U.S. corn stockpiles at the end of the 2019/2020 marketing year would be 2.253 billion bushels, which would've been up 1.44% from the 2018/2019 marketing year ending stockpiles of 2.221 billion bushels. When the USDA's October WASDE report came out last month, it reported that actual 2019/2020 marketing year ending stockpiles were only 1.995 billion bushels, which was actually down 10.18% from the prior year!
In the USDA's October WASDE report, it estimated that U.S. corn stockpiles at the end of the 2020/2021 marketing year would be 2.167 billion bushels, which would've been up 8.62% from the 2019/2020 marketing year ending stockpiles of 1.995 billion bushels.
Yesterday, the USDA released its November WASDE report. The USDA in yesterday's report made a shocking downward revision for estimated 2020/2021 marketing year ending stockpiles! U.S. corn stockpiles at the end of the 2020/2021 marketing year are now estimated to be 1.702 billion bushels, which is down 21.46% from last month's estimate! This is one of the largest downward revisions in the history of corn!
Instead of corn stockpiles estimated to increase by 8.62% in the current marketing year of September 2020 through August 2021, corn stockpiles are now expected to decline by 14.69%!
Corn's stocks/use ratio, which finished the 2018/2019 marketing year at 15.54% and the 2019/2020 marketing year at 14.37% is now estimated to decline during the current 2020/2021 marketing year to only 11.48%!
Back on May 12th when the USDA released its first estimate of 2020/2021 marketing year ending stockpiles, they were estimated to be 3.318 billion bushels, which would've equaled a stocks/use ratio of 22.42%. A stocks/use ratio of 22.42% would've been the highest since 1987/1988 and extremely bearish for corn. A stocks/use ratio of 11.48% would be the lowest since 2012/2013 and is extremely bullish for corn. Corn's average closing price in 2013 was $5.6872 per bushel and we could easily see corn rally into the $5-$6 per bushel range between now and January 15th!
The last time that corn's estimated stocks/use ratio made such a dramatic unexpected decline was in the second half 2010 when corn made one of its largest short-term rallies in history!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 737 CORN January 2021 $13 call options and may either buy more contracts or sell his contracts owned at any time. This message is meant for informational and educational purposes only and does not provide investment advice.