The legend of Cornucopia

COMMODITY WATCH

Amalthea raised Zeus on the milk of a goat and in turn Zeus gave her the goat's horn, the horn of plenty, which had the power to give to the person in possession of it whatever he or she desired. This is the legend of cornucopia.

Despite what contemporary mindsets might be, for us at Or-phe-us real wealth is still linked with milk, food, corn and maize. To just give you a reality check. Did you know that from 1995 till 2005, corn gave an average minus 3 per cent return annually? And six out of the last ten years were negative. But 2006 just inverted the scale, as the decade average moved up from minus 3 per cent to plus 3 per cent. Corn was up 57 per cent in 2006. What happened?

Analysts might blame it on alternative energy, ethanol and how there is not enough corn in this world, and the corn-ethanol conversion ratio of 2.7 gallons per bushel etc.

But for us in the rounding bottom pattern, the accumulation got over in 2006 and currently corn is undergoing the three primary wave move up, which should take it at least 23 per cent up from current levels.

We don't have the horn of plenty for you, but just to make sure you don't miss the bus we have studied NCX Maize February 2007 futures here, with key Fibonacci levels marked with horizontal lines.

The asset under study has not only broken the minor falling trend channel but also seems headed up above first resistance at 780. We expect the recent lows for the grain to hold. Only a move below 750 will need review.

(Contributed by or-phe-us.com, a global alternative research company)

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