The Hackett Money Flow Commodity Report July 6, 2017€¦ · Money Flow Commodity Report July 6,...

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The Hackett Money Flow Commodity Report July 6, 2017

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Published By Hackett Financial Advisors, Inc.

Shawn Hackett, President 23162 Post Gardens Way

#720 Boca Raton FL 33433

561-573-3766 Email: [email protected]

www.HackettAdvisors.com

ISSN 1937-7207

Growing Financial Success

CONTENTS Grains, Coffee and Milk bullish fireworks ahead heading into late summer to early fall 2017. Breakfast of champions

All Grains Equal weighted Index Special Report on Grains,Coffee and Milk

Our all grains equal weighted index is nearing the key multi-year resistance that has held the grain markets in check since late 2014. We believe that this area could cause a pause in the grain markets before ultimately breakout above this threshold and triggering a runaway advance and a milt year bull market that has been part of our long term forecast.

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Weather Models keep above normal heat for the majority of the key grain belt through mid-August.

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Weather Models keep below normal moisture for the majority of the key grain belt through Mid-August.

A stationary northwest ridge has developed in the mid-west that is expected to remain through at least mid August. This should keep above normal heat and below normal precipitation to the core grain producing states of the central to northwest grain belt. All we need is a 4% below trend line yield corn crop to give us an extraordinarily tight US ending stocks to usage ratio. That would propel corn prices north of $5/bu with ease. Soybeans have a higher threshold to overcome. For soybeans a 10% below tend line yield would be required to cause similar tightness as we would have in corn. While that is too far away to determine just yet the soybean market is very likely going to add weather premium throughout July in anticipation.

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With the strongest smart money buy signals of the year in soybeans and in bean-meal the move could surprise to the upside as spec. shorts keep getting taken to the cleaners in the grain markets. We expect wheat markets to make their summer highs in the month of July with extreme upside targets near $6/bu for KC Wheat and CBOT wheat. The highs may already have been placed. We expect a smart money sell signal to be triggered in wheat on Friday’s cot. Harvest in the US for winter wheat continues and will add fresh supplies to the market on top of the large carryover from last year. Farmers will sell this rally very aggressively coming off the combine as they should. Current prices work for wheat farmers who now can pay their bills and appease nervous bankers. This aggressive supply availability should keep a cap on wheat prices into August before a renewed rally engulfs wheat in the fall to cause new rally highs to be made. So as this is an orchestra, the timing of the moves is in perfect rhythm. Rice and wheat were the first to break out this year that will then be followed by corn and then soybeans while wheat prices begin to underperform with downside risks. Right now corn and beans are the place to be with wheat now unattractive on a relative basis over the short term. September 2017 Corn Price Chart

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A break out above $4.10 would trigger a runaway advance.




Bean Meal December 2017 Price Chart

Soybean September 2017 Price Chart

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Bean meal in full break out mode with upside target to the $375 to $400 area.

A break above $10.00 would trigger a runaway advance




A new high level for our smart money buy signal in Beans bodes well for a big July rally.

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A new high level for our smart money buy signal in Bean Meal bodes well for a big July rally.

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Strong smart money buying on the recent correction in corn gives credence to a strong July rally

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A shorter top in July for wheat prices imminent as we approach major resistance




Coffee A massive smart money buy signal in coffee bodes well for a large rally into the fall 2017

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Milk 2013 Déjà Vu

NFDM breaking out is a warning signal that the bull trigger in powder is upon us

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An early July low in 2013 began the Chinese powder importation induced bull market move. We think we are set up for the same kind of trigger in 2017.




WMP basing pattern about to complete to confirm NFDM’s break out signal

Chinese powder production below the last 2 years

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Chinese Powder imports to ramp up by late summer. We expect records to be set for monthly Chinese imports as they or forced into restocking.

Chinese powder production on a long term decline. They are running out of time before massive

powder imports will be required

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Hackett Financial Advisors Inc. specializes in the agricultural space where there is far less coverage by the commodity analyst community and where some of the greatest opportunities should remain in the years ahead. While everyone on the planet has an opinion on Crude Oil or Gold there are very few who study agriculture in the manner that we do. We would be happy to see if opening an account with us would fit your needs whether as a commercial operator and/or a professional investor/firm. Apply for an account online with the following link: https://www.hackettadvisors.com/Account_Open.asp We also put God first in our dealings with you and our approach to the markets. Our heart is in the right place and through is honor and grace great things are possible. We take the view that the more successful you are the more you can give back to those in need. It hardly makes any sense to do it for any other reason.

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Also remember that you can also open an account with us at Hackett Financial Advisors Inc. We clear all our operations through R.J. O'Brien & Associates whcih is the oldest and largest independent futures brokerage and clearing firm in the United States. A futures commission merchant (FCM), RJO is a full clearing member of: the CME Group (founding member of the Chicago Mercantile Exchange) and all its markets; IntercontinentalExchange (ICE); NYSE Liffe U.S.; and the CBOE Futures Exchange (CFE).

RJO offers the latest in order entry technology coupled with 24-hour execution and clearing on every futures exchange worldwide. Clearing more than 100,000 client accounts, the firm provides a full range of services to the industry’s largest global network of introducing brokers (IBs) and to commercial, institutional, international and individual’s clients. These include more than 400 IBs and many of the world's largest financial, industrial and agricultural institutions. We do not engage in proprietary trading; all of our business focuses on our valued clients.

Founded in 1914, RJO is one of the last 'boutique' futures firms in the industry. It is a privately held business majority owned by the O'Brien family of Chicago. The O'Briens have been instrumental in the development of the futures industry and remain committed to the continued growth of the company and our leadership within the industry.

With client assets of approximately $3.6 billion, RJO is a well-diversified, fully integrated FCM. The firm regularly captures top-tier market share in both agricultural and financial futures products at both the CME and CBOT

Our Place in the Industry

If you have any questions about any of the content in this report, please call me at (888) 535-5525 or e-mail me at [email protected] . Thank you for reading and I hope your future investment decisions turn out to be prosperous ones.

Best Regards,

Shawn Hackett, President

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The Hackett Money Flow Commodity Report July 6, 2017€¦ · Money Flow Commodity Report July 6,...

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