In today’s DailyWealth, Tom Dyson makes the case for much higher grain prices in the future. According to Tom, here are the inflation adjusted highs for the grains (hit in 1947):
- Soybeans: $37.86
- Corn: $26.03
- Wheat: $29.25
Considering that during a bull market, nearly everything hits a new all-time high – these could have some room to run, especially when accounting for inflation.
What I find particularly attractive given this argument though are the softs – particularly sugar, cotton, and coffee. Despite their awesome rally YTD, all three are still quite a ways off of their nominal all-time highs, never mind the inflation adjusted numbers.
I’m personally rooting for this correction in the softs to last a little while, so that we have time to rebuild our positions and enter these markets at favorable prices.