Corn prices pushed higher Monday, closing in on $8 a bushel, as devastating Midwest floods raised fears of a sharply smaller U.S. corn crop and another spike in world food prices.
Corn prices have shot up 11 percent in the last week as floodwaters continue to ravage the Midwest, swallowing corn fields just before the crucial growing season. The U.S. government will report June 30 on how many acres have been lost to flooding, but a survey in Farm Futures magazine estimated that flooding could claim 3.3 million acres — or nearly 4 percent of the expected crop.
What's the trade?
If you think the corn has peaked and will likely go lower, I think the way to play it is with Pilgrim’s Pride , says Guy Adami. Corn is a huge input cost for them.
I agree, if you think corn topped out, dip your toe in Pilgrim’s Pride, adds Joe Terranova.
Chaquita banana warned Monday, adds Jeff Macke. I think you can trade off that.. get long Fresh Delmonte .