David Fuller's view This is not without risk of some profit erosion from my earlier trade as corn (weekly & daily) is experiencing at least a consolidation of recent strong gains near the psychological $5 level. Nevertheless, I think the story remains bullish for grains generally, albeit always subject to vagaries of weather, and that it is not fully understood outside the commodity trading fraternity. Also, Fed Chairman Ben Bernanke signalled yesterday that he will do everything he can to assist economic recovery. I assume that this means plenty of liquidity and a soft USD. I bought December corn at $5.114, including spread-bet dealing costs, which is fractionally below where I was stopped out on Monday. This item from Bloomberg: Corn Takes 'Baton' From Wheat, to Lead Grain Rally, Rabobank's Gordon Says, may be of interest. I currently hold a 4-bean salad of corn, soybeans, rice and wheat.


Bernanke's statement clearly provided more fuel for gold and silver, which top the list of commodities affected by abundant liquidity, the flipside of which is declining purchasing power for fiat currencies. In the short term, grains are my proxy for gold because fewer people are involved. However, the grain story is cyclical - more will be planted next season - while precious metals remain the first secular theme identified by Fullermoney for this millennium.

Regarding yesterday's additional purchase of NYME crude oil, I am likely to trade this actively, in the event of further volatile ranging.