CORN

I love the fact we have members from all over the world and in all kinds of industries. One member works with corn and sent me an email about trouble they are having getting it planted in the eastern corn-belt due to the Mississippi flooding to the east and south as well as drought in other areas.

So in poking around real quick, there are several choices of companies that process ad distribute corn/derivatives, but there's also a fund that invests specifically in corn futures contracts, it's called CORN. Being the problem is one of a longer duration, I like the fact they are investing in contracts that are staggered into the future. You can read more about CORN at YahooFinance.

Here's some initial observations

 Here's CORN compared to the GCC commodity index, tracks pretty close.

 Taking a closer look though, which is what is important as the first trading day after the spillway was opened would have been May 16th, is the recent divergence between the two with CORN moving to new May highs while GCC doesn't follow.

3C has been pretty much inline with CORN since the 16th. The only bothersome matter at this point is that I don't see a low risk price level with a nice positive divergence. It may not come, CORN may breakout to new closing highs. So I'm going to put alerts on price for a breakout and a pullback and see if there's a good tactical entry that materializes.