Corn Futures, Poultry Stocks Wait Out Argentina Drought

Thu, 12/22/2011 - 18:02 EDT - Seeking Alpha

By James Roemer:After our bearish Fall attitude in corn and soybeans, due to our expectations of the "short crops have long tails" axiom and worries over the world financial situation, a developing drought in Argentina has the chance to rally corn futures at least 10% over the next few weeks. Why? Argentina and Brazil are then number 2 and number 3 exporter of corn in the world, and presently it is their summer growing season. I see a continuation of the drought expanding in most of Argentina.This is the critical time for Argentina's corn crop to pollinate. January weather so important because severe soil moisture deficits can delay silk emergence and disrupt the synchrony of pollen shed and silk availability, resulting in poor kernel set.The profit margins of chickens are related to the price of corn. In a nutshell, if corn prices fell 20% from current values, this would saveComplete Story »

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Corn Futures, Poultry Stocks Wait Out Argentina Drought

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