GO
Loading...

Dennis Gartman: Corn Has Reached a Breaking Point

Tuesday, 17 Jul 2012 | 6:03 PM ET

The corn crop will probably be so small that industry will have to make some tough choices.

“This is absolutely the worst time to have this kind of drought and heat wave – it’s happening right at pollination,” explains esteemed commodities investor Dennis Gartman, author of The Gartman Letter.

He thinks companies are now at a point of no return. In a live interview on CNBC's Fast Money Gartman tells us that even if it does rain and the leaves turn green, the corn inside the husk won't be substantial.

Worst Midwest Drought Since 1956
Dennis Gartman of The Gartman Letter, offers investment advice for corn and grain traders. "I think corn might still go higher," says Gartman.

"We thought the harvest would yield 14.7 billion bushels but it’s going to come in under 13 billion bushels,” he says.

And that will lead to some tough choices. We’re at a point where there won’t be enough to go around.

“I think it means corn for ethanol use will have to wait,” says Gartman. “We’ll need the corn for feed," or livestock will go hungry.

Also Gartman says if you’re buying ferts as a bet fertilizer will be needed to help salvage corn crops, think again. “That’s nonsense – farmers aren’t going to apply any more.”

Posted by CNBC's Lee Brodie

Read More from Fast Money:

> Simple Strategies Behind Supersized Successes

> 10 Top Stocks for the Long-Term Investor

> Top Apple Related Stocks for 2012







______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On July 17, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long SBUX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is short IWM; Steve Weiss is long QCOM; Steve Weiss is long DVN; Steve Weiss is long T; Steve Weiss is long VZ; Steve Weiss is long WLP; Steve Weiss is long BCE; Steve Weiss is long VOD; Steve Weiss is short PCAR; Steve Weiss is short APPLE PUTS; Steve Weiss is short JCP; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU

For Dennis Gartman
Dennis Gartman is long Gold in Yen Terms
Dennis Gartman is long CAD
Dennis Gartman is long S&P 500 Index
Dennis Gartman is short Corn
Dennis Gartman is long Wheat
Dennis Gartman is long Nat Gas
Dennis Gartman is short Yen
Dennis Gartman is short Euro

For Doug Freedman
RBC Capital Markets, LLC makes a market in the securities of INTC
RBC Capital Markets has provided Intel Corporation with non-securities services in the past 12 months: INTC

For Ann Duignan
J.P. Morgan acted as lead or co-manager in a public offering of equity and/or debt securities for DE
A senior employee, executive officer or director of JPMorgan Chase & Co. and/or J.P. Morgan is a director and/or officer of DE
J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: DE
J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment banking clients: DE
J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from DE
J.P. Morgan has received compensation in the past 12 months for products or services other than investment banking from DE

CNBC.com with wires.

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report