- The National Corn Index (national average cash price) is low, but not dramatically so despite its long-term downtrend that is approaching two years.
- December corn futures are also in a long-term downtrend, similar to what was seen in 2014 when the Dec contract finally bottomed during September and October.
- The Teucrium CORN ETF has lost 30% of its value since the end of May 2022, possibly low enough to start attracting long-term investment money.
I’ve recently written about safe haven markets, comparing the performance of two Kings of Commodities, gold and crude oil, as the world hurtles from one chaotic weekend to the next. The conclusion was long-term investors will likely continue to use gold to hedge risk in other market sectors despite the fact cash, futures, and ETFs are hitting new all-time highs. However, are these same investors looking at the different aspects of gold as a long-term opportunity? The most recent CFTC Commitments of Traders report (legacy, futures only) showed noncommercial trades decreasing their net-long futures position in gold by 496 contracts (as of Tuesday, April 16)[i]. Again, with different aspects of gold at all-time highs, it’s difficult to make a case for long-term investments based on either value or growth potential.
