Trading the Worst Drought in 50 Years
As American farmers suffer through the U.S.’s worst drought in 50 years, large portions of the nation’s corn crop is faltering. Nevertheless, “Mad Money” host Jim Cramer still thinks “there’s always a bull market somewhere.”
“How do you play this hideous drought that’s killing crops all over the country, and causing the price of food to soar at the same time?” Cramer asked. “How can you profit from this scorched market? “
For answers, Cramer turned to Tim Collins, a highly regarded technician on Wall Street. Yields of corn were so badly affected by the drought that Collins doesn’t think farmers or traders will forget it anytime soon. As a result, he thinks there will be more demand for Monsanto’s genetically-modified seeds, which tend to produce more resilient crops.
Perhaps more importantly, though, Collins sees an opportunity developing in Monsanto’s charts. Watch the video to see Cramer break down the technical analysis.
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