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Use the Dip in Wheat to Accumulate Long Term Positions

|Includes: DBA, VanEck Vectors Agribusiness ETF (MOO)

For indisputable proof that I am not infallible, please re-examine my call to watch wheat for a buy below $5.90 . It has since dropped 12%, falling almost every day.  The weather that cut the legs from under natural gas has been great for grain supplies, but terrible for prices. The trigger was last week’s USDA report on corn acreage, which instead of delivering 1-2 million fewer acres because of late planting, announced a shocking increase of 1 million acres. The 3 million acre swing caused corn futures to go limit down, dragging the rest of the soft complex with them. On top of this, you can add the general flight from assets of all classes that has been unfolding over the last few weeks. This is yet again, another lesson about keeping stops on your ag positions at all times. You never know when a lightning bolt like this is literally going to come out of the blue. I still like the entire food play longer term, so for investors, as opposed to traders, this is a chance to build a core holding at lower prices. To quote Marine Corps. General Oliver Smith, at Korea’s Chosin Reservoir, “Retreat, Hell,  we’re attacking in a different direction.”