Could Corn or Cattle be the Next GameStop?
The GameStop spectacle took center stage in January. As the stock’s value went from $2 billion to over $24 billion last week, it seemed like a battle between Wall Street and investors chatting on Reddit.
With the runup in stock prices for GameStop, AMC and others, could corn, soybeans or even cattle be next? Here’s what Tommy Grisafi of Advance Trading had to say about it on U.S. Farm Report this weekend.
“Last night, I was just becoming like one of these techies and I was on one of these blogs, too, and they said in the morning,’ we're going to go after SLV, which is the silver, and sure enough, I came in this morning and silver was up $2,” said Grisafi. “So, the techies, the Reddits, the bloggers, the Stool president [Dave Portnoy], the new 10 million stock accounts opened during the pandemic, they all have their new favorite thing. And that's buying dips and selling rips. Anything's possible.”
Grisafi said while anything is possible, he cautioned past experiences tell him things could change quickly.
“I've learned in my history of commodity trading, that the exchange, the CFTC, the NFA will come in at a much quicker pace and calm this down,” said Grisafi.
John Phipps also gave his thoughts on the GameStop surge on the show this weekend.
“The question our analysts will doubtless be getting is could this happen to say wheat or feeder cattle,” said Phipps, “I’ll let them answer that but will note the size of commodity contracts seems to me to be a considerable threshold. Do not take that as a knowledgeable answer. While skeptics think this is just about making money quickly, there is some element of fighting back against the systemic inequality of wealth and income.”