Friday, January 11, 2013

Time to Buy Grains?

For the first time the monthly crop reported was during trading hours and it led to an immediate spike in the price of Corn and Wheat futures. The stock for corn came in lower than expected the planted acres for wheat were below what analysts expected.

The Teucrium Corn Fund ($CORN) closed up 0.6% and the Teucrium Wheat Fund ($WEAT) added 1.5%. The more widely followed iPath UBS Grains ETN ($JJG) closed higher by 1.1%. In early session trading $JJG hit a new 6-month low before the reversal on the midday report.

The action today in $JJG is extremely bullish and considering the oversold territory it is in after falling for the last five months I like it as a potential buy candidate.

It just so happens $JJG was one of the 35 ETFs/Stocks that were highlighted in the Penn Financial Group 2013 Outlook. 

If you are interested in receiving a copy of the PFG 2013 Outlook that includes our top 35 plays for the new year please email the office at info@pennfinancialgroup.com or call 1-877-383-7366.

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