Fuel costs cannot be blamed as the sole catalyst in rising food prices, as harvests hit by hot weather and Covid restrictions, an increase in global demand – with a dramatically cold 2020 winter and hot 2021 summer, and disruptions in the supply chain, are also to blame. But if transport and farming costs continue to rise, our food bill is likely to keep climbing.
Pressuring prices higher are farmers faced with a whole host of inflationary woes, from soaring fuel, fertilizer, labor, and machinery costs to adverse weather conditions that may result in fewer plantings in 2022.
DBA Holdings
- Corn 13.02%
- Soybeans 12.81%
- Sugar 12.27%
- Coffee 12.08%
- Live Cattle 11.61%
- Cocoa 11.23%
- Lean Hogs 8.07%
- Kansas Wheat 6.19%
- Wheat 6.05%
- Feeder Cattle 3.86%
- Cotton 2.81%
Ascending triangle formation is pointing to a potential breakout in the near future with price converging near the apex on declining volume and volatility. DBA is holding above all key moving averages, a breakout over $19.50 on strong volume will provide confirmation for a continued upside move.
In addition, spec positioning have declined significantly from the highs in May 2020 and open interest appears to be increasing once again on many agricultural commodities.
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✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
Pressuring prices higher are farmers faced with a whole host of inflationary woes, from soaring fuel, fertilizer, labor, and machinery costs to adverse weather conditions that may result in fewer plantings in 2022.
DBA Holdings
- Corn 13.02%
- Soybeans 12.81%
- Sugar 12.27%
- Coffee 12.08%
- Live Cattle 11.61%
- Cocoa 11.23%
- Lean Hogs 8.07%
- Kansas Wheat 6.19%
- Wheat 6.05%
- Feeder Cattle 3.86%
- Cotton 2.81%
Ascending triangle formation is pointing to a potential breakout in the near future with price converging near the apex on declining volume and volatility. DBA is holding above all key moving averages, a breakout over $19.50 on strong volume will provide confirmation for a continued upside move.
In addition, spec positioning have declined significantly from the highs in May 2020 and open interest appears to be increasing once again on many agricultural commodities.
___________________________
✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!