Dont think me crass but?

Question

is this a good time to invest in corn, since...you know...the corn crop is basically underwater right now and prices are going up? That means if I by now, it shoud keep rising until they get a new crop?

well....is my logic sound or what?

Answer 1

If you want to make money speculating, you must anticipate these things & buy before they happen.  All you're doing now, is chasing performance.  This generally ends badly.  Ask anyone who bought tek in the late 90's.

Answer 2

Genius.

Well, you've got the general part nailed down, but be ready for a correction once you and other such common folk lay their money down. Some commodity traders speak of 'shaking the monkeys' out of the trees from time to time, they take the cash and chase the little players (probably folks like you) by dumping part of their position, sending things limit down. So, don't bet everything on the position, you will need some reserve when it happens (or you might be paying on that debt for years like it happened to me once, a while back). If you thought stocks were risky, wait till you try futures.

Answer 3

Speculating? Chasing? I wouldn't be so " crass" as to belittle your question or your style... you see something..you have an opinion.. you act... why would that be any different than buying Gamestop when you see crowded stores all the time?

Anyway... sure, there's a good chance corn ( and other crops) will be more expensive in the near future...broaden your approach with DBA...an ETF focused on most grain prices as well as some other things.

...and oh! yeah...good luck!

Answer 4

That's not investing, that's speculating.

And it's the same kind of speculating that's created the oil crisis.

Now, if you really needed 1000 bushels of corn, then I'd say go ahead and spend your money.