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Commodities - more than metals/oil

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wayneL

wayneL

VIVA LA LIBERTAD, CARAJO!
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How about softs/grains.

Sugar has had a stellar run last year and and equally tradeable sell-off this year. (Futures are just as easy to short as to long.)

The grains are the latest to go on a bullish little romp. (while most of the tradeable metals have been stagnant) i.e Wheat, Corn and the Soybean complex

Check out this bullish article

http://www.bloomberg.com/apps/news?pid=20601087&sid=aN6AH00z2lbQ&refer=home

Wheat Prices May Reach Record, Hurting Kellogg, Helping Funds

By Tony C. Dreibus and Jeff Wilson

Oct. 30 (Bloomberg) -- A growing scarcity of wheat may send prices for the world's most-planted crop to their highest in the next six months, threatening to spur inflation in China and India and increase costs for food companies.

Reduced production because of droughts in Australia, Ukraine and the U.S. sent wheat skyrocketing 50 percent this year. Prices may jump 47 percent more to $7.50 a bushel on Chicago futures markets, matching the 1996 record, said Brent Harris, who runs the $14 billion Commodity Real Return Strategy Fund for Pacific Investment Management Co. in Newport Beach, California. Michael Lewis at Deutsche Bank AG in London said grains will outperform all other commodities in 2007....
Click to expand...
 
wayneL said:
How about softs/grains.

Sugar has had a stellar run last year and and equally tradeable sell-off this year. (Futures are just as easy to short as to long.)

The grains are the latest to go on a bullish little romp. (while most of the tradeable metals have been stagnant) i.e Wheat, Corn and the Soybean complex

Check out this bullish article

http://www.bloomberg.com/apps/news?pid=20601087&sid=aN6AH00z2lbQ&refer=home
Click to expand...
WOW! Are you planning to get in on some of these gains?

You see, I'm a fan of zinc, and seeing as the price continues to rise, you only need to buy stocks like ZFX and CBH to do very well. So with wheat set to rise, surely companies that have exposure have got to benefit? AWB springs to mind, but with all the negative media surrounding it, I'm not so keen. So what would be worth putting on the watchlist?

As long as global warming continues to worsen, I think global wheat production could be in decline from here on, and so it would make sense to hold some wheat/grain companies that will benefit from higher prices...
 
scsl said:
WOW! Are you planning to get in on some of these gains?

You see, I'm a fan of zinc, and seeing as the price continues to rise, you only need to buy stocks like ZFX and CBH to do very well. So with wheat set to rise, surely companies that have exposure have got to benefit? AWB springs to mind, but with all the negative media surrounding it, I'm not so keen. So what would be worth putting on the watchlist?

As long as global warming continues to worsen, I think global wheat production could be in decline from here on, and so it would make sense to hold some wheat/grain companies that will benefit from higher prices...
Click to expand...

I trade them directly via futures, so don't really know what companies would benefit....AWB could actually suffer as a result. Unless Aus has a bumper crop but drought everywhere else.

Here is something topical - AWB pleads for farmers wheat
 
Yup, once GOLD fails as a currency...
then is Grain...

(i mean, whats the point of all the gold in the world if you haven't got food!)




But by then, well...
(damit, where's that animation of the crap hitting the fan!!!)


:eek: :eek: :eek: :eek:
 
yeah, l agree with WayneL. l sold my corn warrant around the $2.60 mark a few weeks ago and now it's around the $3.50. Aren't l an idiot?!
 
One point to note is that with the increasing worldwide use of ethanol as a fuel, agricultural commodities are increasingly influenced by the oil price.

If oil goes to $200, for example, then there would be an awful lot more demand for ethanol. Once enough plants get built to supply it (ethanol productions isn't particularly difficult - building a plant is well within the abilities of junior companies) then demand for the feedstock booms. If oil crashes to $10 then existing ethanol demand for agricultural feedstock disappears literally overnight. Hence agricultural commodities are increasingly tied to the oil pice.

Anyone have a list of which companies on the ASX benefit from rising agricultural commodity prices? Plant based agricultural commodities that is - pigs and cows aren't useful inputs for ethanol!
 
Smurf1976 said:
One point to note is that with the increasing worldwide use of ethanol as a fuel, agricultural commodities are increasingly influenced by the oil price.

If oil goes to $200, for example, then there would be an awful lot more demand for ethanol. Once enough plants get built to supply it (ethanol productions isn't particularly difficult - building a plant is well within the abilities of junior companies) then demand for the feedstock booms. If oil crashes to $10 then existing ethanol demand for agricultural feedstock disappears literally overnight. Hence agricultural commodities are increasingly tied to the oil pice.

Anyone have a list of which companies on the ASX benefit from rising agricultural commodity prices? Plant based agricultural commodities that is - pigs and cows aren't useful inputs for ethanol!
Click to expand...

CSR would be one (sugar is also becoming an energy market)
 
Zinc sux

OJ rocks :D Prodding at all time highs

Chart
chart
 
I think Lead is a high demand, and yet forgotten base metal.

Mod Note- Please provide more of an explanation here on ASF, if you continue to post in this style I will have to take further remedial action.
 
March Corn going limit up :D

....and oil 52.20 FFS. We'll be in the 40's before you can say Jack Robinson :eek:

Dubya will blow up a pipeline himself if this keeps up! lol
 
wayneL said:
Dubya will blow up a pipeline himself if this keeps up! lol
Click to expand...

...or turn on the top secret weather machine for another hurricane in the Gulf of Mexico.
 
corn just opened limit up on a bullish report.

another 2.5c and soy will lock too.

:D :D :D

<edit> soy locks at 50c not 30c as I thought
 
Well soy neeeearly hit its limit of 50c, corn was locked all day and wheat hit it's limiy and backed off a couple of cents.

You should have seen the number of contracts sitting on the bid (which was at the limit price) trying to pick up some dummies selling at the bid (not many lol)....Nearly 70,000 CONTRACTS at one stage.

Looks like we might be paynig more for popcorn in the near future :eek:
 
Corn is already limit up again today on ECBOT.

Looks like taco shells are going to get expensive :eek:
 
Nice night on the commods folks.

Commodities might be more than metals and oil, but the same put in a stellar performance, particularly oil/energy.

Grains making overtures for another up leg also... it might be wheats turn for some action FWIW
 
hi wayneL

just wondering whats on your watchlist atm... I'm thinking going long sugar soon

also what software are you using to chart these

cheers
dodgers
 
This ones on my watchlist now.
 

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