Corn prices climbed further into record territory Thursday after more rain doused the Midwest leaving flooded corn crops deeper underwater and threatening livestock owners who depend on the grain to feed their herds.
NBC Weather Plus Meteorologist Britta Merwin tells us that although the rainfall has stopped in Iowa many rivers aren't expected to crest until Wednesday or Thursday of next week. Subsequently some farmers have been forced to abandon their crops – a move which sent the price or corn and soybeans sky-high. Prices broke past the $7 barrier for the first time Wednesday.
Despite the weather pattern I would fade the move in corn, counsels Guy Adami, because it’s gone so far so fast. I wouldn’t get short but if I was long I’d get out.
I think you buy corn on any pullback, counters Pete Najarian.
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Trader disclosure: On June 13, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (INTC), (MSFT), (DIS); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (NUE), (MSFT), (INTC), (MSFT), (DIS); Pete Najarian Owns (ANR), (BHI), (CHK), (TSO), (XLF), (HPQ); Pete Najarian Is Short (KEY); Pete Najarian Owns (BAC) Puts, (WFMI) Puts, (FITB) Puts; Pete Najarian Owns (EXM) And (EXM) Puts; Pete Najarian Owns (AAPL) And (AAPL) Puts; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NYX), (SUN), (TSO), (VLO), (PM), (MO); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (BIG), (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm Is Long (AAPL) Out-Of-The Money Calls; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short The British Pound