Australian (ASX) Stock Market Forum

How to get into coffee, cocoa and wheat?

mb1

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How do I invest into these commodities. Do I get exposure through listed companies? Which ones?

thanks for any help
 
You could buy futures or CFD futures. Or you could buy into commodity funds in the US.

For futures, the daily ranges alone can wipe you out. Its best to trade these after several years of successful stock trading experience, and a large account (anything less than 100 is not large). Once you find an edge i think it would be a good idea to understand how many losses you can stomach.

CFD futures are a pain with the cruel spread you need to pay.

Can't comment much on the Commodity funds, only that i have heard that it is a way to get exposure.

Not much help, I'm sure Wayne will add a comment when he awakes.

Cheers,
 
I bought an ETF (exchange traded fund) based on Soya beans, wheat, coffee, sugar and so on. This one trades in London but I'm sure there are ones available in Oz too. Or you could just buy the London listed one if your broker handles overseas shares. Here's the website for the ETF provider:

http://www.etfsecurities.com/en/welcome.asp
 
thanks guys, might stay away from cfds and futures, dont really know that much about them
 
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