Yes, once again, I’m in the lonely position of being just about the only person in the entire country looking for SKYROCKETING GRAIN AND SOYBEAN PRICES in the coming months. And, I’m giving 80% odds of this happening! I would buy ‘call’ options or futures on every major dip.
I base this prediction on near all-time record exports, more than DOUBLE in corn, and the largest late January drought pattern in recorded history, 5,700 miles long from western Illinois westward to 600 miles west of Hawaii and 3,900 miles wide from Alaska southward into Mexico.
I have never seen Hawaii, California, Kansas and Iowa, as well as my state of Idaho, in the same drought pattern.
The drought in California can’t get much worse than the current situation of no rain at all, the driest January ever on the heels of the driest year ever in 2013. My sister Carolyn, located in the Santa Cruz Mountains of central California, had her well run dry recently for the first time ever. Irrigation water may be cut as much as 95%, if February and March stay dry in California, where I see the worst fire season ever in 2014.
What about corn prices this summer? Well, if the big drought pushes some 1,100 to 1,300 miles east to the western slopes of the Appalachian Mountains as expected, I see $6 corn, $8 wheat and at least $15 July soybeans, as I’ve long-predicted would be the case. We’ve already seen $4-plus oats and $450-a-ton soymeal.
I’m also “bullish” gold, silver and natural gas. More updates later.
