Is It Time To Short Grain And Soybean ETFs?

July 25, 2012


While the Teucrium Corn (NYSEArca: CORN) and Teucrium Soybean (NYSEArca: SOYB) are trading near highs for the year, the Midwestern drought that made their rallies possible may already be baked into the two ETFs’ prices, which means shorting them may now be an appropriate move, according to an article on Emerging Money.

CORN and SOYB both gained nearly 30 percent over the course of the last month, but as this rally is not attributed to economic demand and the global markets are suffering from economic slowdown in China, India, the U.S. and Europe, holding a short position could net investors a profit as the prices return to normal levels, the article said.

Once the drought is over and emerging markets countries get back on their path of development, then investors could transition back into long positions for these commodities, the Emerging Money report said.

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