Dicker: Buy Corn on the Dip
NEW YORK ( TheStreet) -- I was talking with Jim Cramer today about corn prices, which have had a recent drop, falling on a very bearish crop report on Friday. While this puts corn prices again under $7 a bushel, I don't believe this represents the start of a new bear market in corn. In fact, I'm more apt to buy.
Corn has been the victim of a horrific drought that brought prices to a screaming high above $8 a bushel late last year. While the effects of the drought continue, the U.S. Department of Agriculture has reported that a record crop of corn has been planted. Whether that record crop will see itself to harvest is a great question, as well as what we know are increasing demand profiles all around the world.
Add to this the indisputable correlation of corn futures prices with oil futures prices, connected solidly through ethanol, and my belief that a significant drop in oil prices is unlikely and you've got less of a reason to believe that we're on the cusp of a new corn bear market.
I talk more about corn with Jim in the video above.Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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