Hat tip to TraderCaddy. [[DBA]] is how one cracks corn, unless you want to wait a quarter or so for [[BWLD]] to reap the benefits. As shown below, DBA gets one exposure to Corn futures of 25%, if I’m reading the holdings correctly.
|Cbt Wheat (Fut)||N/A||2.93|
|Corn Future Jul08||N/A||9.25|
|Red Wheat Fut Mge Jul08||N/A||1.61|
|Soybean Future Jan09||N/A||9.48|
|Wheat Future(Kcb) Dec 08||N/A||3.14|
|Wheat Future(Kcb) Jul08||N/A||10.43|
As shown in the chart, DBA has formed a bearish descending triangle. A break of $35.00 seems as if it could be catastrophic, as I see no support beneath that level.
Also, the farmer always gets the shaft. Always. No wayÂ the American government passes aÂ law giving 10 billion in farm subsidies toÂ farmersÂ AND crop prices continue to rise.
I have no position in DBA, but I am considering entering a short position, at the open of Tuesday, May 20th.