Corn Is The Most Hated Commodity

The most-hated commodity this week is corn, where the Optimism Index dropped to 21 on Thursday. 

Corn Sentiment at an extreme.  Of course, we have seen that since late August, corn or any commodity can reach an extreme and stay there for a long time.

Statistics show that six months (120 days) after corn reaches such lows, corn showed a positive return 90% of the time, averaging 10.6%. Fundamentals look terrible, but they always do when pessimism has been this prevalent and this persistent in any commodity.

​Remember, you are in the arena with people with multi-million dollar research departments who are counting on you selling cheap corn.  Here is some sound advice however from multi-billionaire Warren Buffett who said "Be fearful when others are greedy.  Be greedy when others are fearful."  I will tell you that great rallies are preceded by extreme pessimism.