David Kruse, founder and owner of CommStock Investments and Farm News columnist is planning on presenting a new commodity portfolio during his talk at the Farm News Ag Show on Wednesday, Dec. 4 at 9 a.m.
WIN is the title of his speech and the commodity portfolio that Kruse said stands for “Win in November 2020.”
His presentation could be something many of his readers and customers aren’t used to hearing come from Kruse recently.
“For the last three years or more, I have been bearish commodities when essentially looking at the Trump Administration, their trade policy and so forth — recognizing that it had put a lot of pressure on the ag sector. It hasn’t been the best of financial times,” he said. “I have been negative to the ag economy due to the fundamentals. Now, I am turning. I think that the situation is such that we are going to see a recovery.”
Kruse said as he looks ahead to next year, he thinks the table is set for a pretty good recovery – especially from the standpoint of trade.
“We are very close to dotting the “i” and crossing the “t” to the USMCA. We have finished a trade deal that will be very competitive for U.S. agriculture with Japan. That is supposed to go into affect in January,” he said. “They are also working on the Phase 1 trade deal with China that is rumored to have significant benefit to ag commodities and buying from their part of it. I think all of that, including even maybe a more positive RFS policy than what we have had is likely.”
Kruse said part of the premise to his presentation is that if the ag economy is in its current state this time next year, President Trump will be a one term president.
“It is in his political interest, as in all politicians, as they go into an election year, do things that will benefit their constituency — to get the vote out — and I think he is setting the table for that now with these trade deals,” he said.
Kruse said anyone that is interested in the ag and or Iowa economy, as they are tied together very tightly, could benefit from sitting in on his presentation.
“We are putting our investment where our mouth is and we have put together a portfolio of commodities in a program where we are purchasing them. It’s a broad range of commodities, everything from corn, soybean meal, KC wheat, copper, cotton and a few more too – natural gas is one of them, and we are looking for a general improvement in commodity prices as we move into next year and we think we can come out of this commodity low,” said Kruse. “So, we are looking at the prospects that seem to make sense and we fashioned an investment portfolio to match it. To take advantage of it. I think I will have a very interesting presentation and plan to make money in 2020.”
Kruse is founder and owner of CommStock Investments, his Northwest Iowa agricultural risk management company that provides an umbrella of services. They include commodity market brokerage and commodity market advisory services, crop insurance through Agrivantage LLC, and a managed bushels grain marketing program through Agri-Plus LLC. Kruse also owns Royalty Insurance LLC which is a property/casualty insurance company.
Kruse is a frequent keynote speaker at major U.S. agricultural conferences.
The Farm News Ag Show will be held Dec. 4-5 at Iowa Central Community College East Campus in Fort Dodge.