This past Wednesday at 12PMEDT noon, the USDA released their World Agricultural Supply and Demand Estimates (WASDE) report for September 1, 2020. Analysts were estimating that U.S. corn 2019/2020 ending stockpiles would be 2.25 billion bushels or 16.55% of estimated 2019/2020 production of 13.617 billion bushels. Corn 2019/2020 ending stockpiles of 2.25 billion bushels would have equaled a 1.3% increase from 2018/2019 ending stockpiles of 2.221 billion bushels for a new three-year high.
Actual corn 2019/2020 ending stockpiles shocked analysts by declining 10.2% from one year ago to 1.995 billion bushels or 14.65% of estimated 2019/2020 production of 13.62 billion bushels. Instead of corn stockpiles rising to a new three-year high they declined to a new four-year low!
The December 2020 corn futures contract gained by 3.97% last week to $3.7975 per bushel - its highest weekly closing price in seven months!
Corn priced in gold has increased for the last eight consecutive weeks! With corn stockpiles down to a new four-year low we expect corn futures to return to its trailing four-year median priced in gold of 0.002789. With gold at $1,900.20 per oz this would value corn at $5.30 per bushel!
NIA's Teucrium Corn Fund (CORN) January 2021 $13 call option suggestion finished last week at $0.80 for a gain of 14.29% from NIA's August 25th suggestion price of $0.70. With 72 trading days left before expiration we believe NIA's CORN call options are perfectly positioned for huge gains between now and January 15th!
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.