5 People needed to start making cash today

Follow Traderlinkup on Twitter

Thursday, June 30, 2011

Jim Rogers Interview on Dollar, Commodities From June 10 - Video - Bloomberg

Jim Rogers Interview on Dollar, Commodities From June 10 - Video - Bloomberg

Jim Rogers Interview on Dollar, Commodities From June 10 - Video - Bloomberg

Asian Stocks Rise for Fourth Day on Greece Vote - Bloomberg

Asian Stocks Rise for Fourth Day on Greece Vote - Bloomberg

Corn Plunges Most Since November, Wheat Falls as U.S. Reports Acreage Gain - Bloomberg

Corn Plunges Most Since November, Wheat Falls as U.S. Reports Acreage Gain - Bloomberg

U.K. Pound Weakens to Least in 15 Months Against Euro as Rate Bets Decline - Bloomberg

U.K. Pound Weakens to Least in 15 Months Against Euro as Rate Bets Decline - Bloomberg

S&P 500 Has Biggest 4-Day Gain in 9 Months - Bloomberg

S&P 500 Has Biggest 4-Day Gain in 9 Months - Bloomberg

Copper Advances to Nine-Week High as Greek Concerns Ease, Dollar Declines - Bloomberg

Copper Advances to Nine-Week High as Greek Concerns Ease, Dollar Declines - Bloomberg

Shark Chase, Blood-Thirsty Tourists Jolt Town - Bloomberg

Shark Chase, Blood-Thirsty Tourists Jolt Town - Bloomberg

CNBC Trader Talk Blog — Pisani: Why Stocks Rallied Today — CNBC.com Market News - CNBC

CNBC Trader Talk Blog — Pisani: Why Stocks Rallied Today — CNBC.com Market News - CNBC

French President Nicolas Sarkozy in scuffle with assailant - Telegraph

French President Nicolas Sarkozy in scuffle with assailant - Telegraph

Texas Cotton Farmers May Abandon Record Acres - Bloomberg

Texas Cotton Farmers May Abandon Record Acres - Bloomberg

Papandreou Clinches Votes for 2nd Measure - Bloomberg

Papandreou Clinches Votes for 2nd Measure - Bloomberg

Wednesday, June 29, 2011

Two Euro Visions Boil Beneath Greek Crisis - Bloomberg

Two Euro Visions Boil Beneath Greek Crisis - Bloomberg

S&P 500 Has Biggest 3-Day Gain Since March - Bloomberg

S&P 500 Has Biggest 3-Day Gain Since March - Bloomberg

News Corp. Bails Out on Myspace, Sells for $35M - Bloomberg

News Corp. Bails Out on Myspace, Sells for $35M - Bloomberg

South Africa Mines Nationalization Talk May Cut Output, Impala CEO Says - Bloomberg

South Africa Mines Nationalization Talk May Cut Output, Impala CEO Says - Bloomberg

Global Agriculture Supply Worsening, May Spur Food Shortages, Rogers Says - Bloomberg

Global Agriculture Supply Worsening, May Spur Food Shortages, Rogers Says - Bloomberg

Soggy Corn Fields Curb U.S. Planting as Demand for Ethanol, Feed Increase - Bloomberg

Soggy Corn Fields Curb U.S. Planting as Demand for Ethanol, Feed Increase - Bloomberg

Papandreou Wins Budget Vote, Opening Way for More Aid - Bloomberg

Papandreou Wins Budget Vote, Opening Way for More Aid - Bloomberg

Buffett-Backed BYD Slumps in Hong Kong - Bloomberg

Buffett-Backed BYD Slumps in Hong Kong - Bloomberg

7 Reasons Investors Should Trade Options

7 Reasons Investors Should Trade Options

German Banks, Insurers Said to Meet Government Tomorrow in Greek Aid Push - Bloomberg

German Banks, Insurers Said to Meet Government Tomorrow in Greek Aid Push - Bloomberg

Tuesday, June 28, 2011

Asian Stocks, Won Advance Before Greek Vote - Bloomberg

Asian Stocks, Won Advance Before Greek Vote - Bloomberg

Crude Oil Rises Most in Almost Six Weeks on Greek Vote, Demand for Fuel - Bloomberg

Crude Oil Rises Most in Almost Six Weeks on Greek Vote, Demand for Fuel - Bloomberg

Stocks, Euro Rise Amid Greece Optimism - Bloomberg

Stocks, Euro Rise Amid Greece Optimism - Bloomberg

Lagarde Named New Head of IMF - Bloomberg

Lagarde Named New Head of IMF - Bloomberg

Microsoft Puts Office on Web to Fight Google - Bloomberg

Microsoft Puts Office on Web to Fight Google - Bloomberg

U.S. Stocks Rise Amid Greek Bailout Optimism - Bloomberg

U.S. Stocks Rise Amid Greek Bailout Optimism - Bloomberg

US Stocks Advance 1%, Led by Energy; Vix Slips - CNBC

US Stocks Advance 1%, Led by Energy; Vix Slips - CNBC

SA says Swazi bailout not yet decided: Fin24: Economy

SA says Swazi bailout not yet decided: Fin24: Economy

US Futures - Wall Street to Open Flat; Debt in Focus - CNBC

US Futures - Wall Street to Open Flat; Debt in Focus - CNBC

CNBC Stock Market News — Bank of America 'Massively Undervalued': Bove — CNBC.com Stock Blog - CNBC

CNBC Stock Market News — Bank of America 'Massively Undervalued': Bove — CNBC.com Stock Blog - CNBC

Carrefour Studies Asset Merger in Brazil - Bloomberg

Carrefour Studies Asset Merger in Brazil - Bloomberg

George Papandreou - Greek Tragedy Running in the Prime Minister's Family? - CNBC

George Papandreou - Greek Tragedy Running in the Prime Minister's Family? - CNBC

Monday, June 27, 2011

Why Some Pros Still Think There's a Big Stock Rally Ahead - CNBC

Why Some Pros Still Think There's a Big Stock Rally Ahead - CNBC

U.S. Stocks Advance, Reversing Global Slump - Bloomberg

U.S. Stocks Advance, Reversing Global Slump - Bloomberg

European Stocks Close Little Changed as Greece Debates Austerity Program - Bloomberg

European Stocks Close Little Changed as Greece Debates Austerity Program - Bloomberg

Fed May Buy $300 Billion in Treasuries After QE2 - Bloomberg

Fed May Buy $300 Billion in Treasuries After QE2 - Bloomberg

Fed Seen Buying $25 Billion a Month in Treasuries After QE2 Comes to End - Bloomberg

Fed Seen Buying $25 Billion a Month in Treasuries After QE2 Comes to End - Bloomberg

Dollar Strengthens as Asian Stocks, Oil Decline - Bloomberg

Dollar Strengthens as Asian Stocks, Oil Decline - Bloomberg

Friday, June 24, 2011

Schork Oil Outlook: Switching to Bullish Bias - CNBC

Schork Oil Outlook: Switching to Bullish Bias - CNBC

Oil: IEA Ready To Release More Oil, Show Its Bite, Says Tanaka - CNBC

Oil: IEA Ready To Release More Oil, Show Its Bite, Says Tanaka - CNBC

European Banks Scrambling to Prevent Default by Greece - CNBC

European Banks Scrambling to Prevent Default by Greece - CNBC

Oil: Oil Near $91 as Impact of IEA Release Fades - CNBC

Oil: Oil Near $91 as Impact of IEA Release Fades - CNBC

BOE Says Debt Crisis Represents Biggest Threat to U.K. Financial Stability - Bloomberg

BOE Says Debt Crisis Represents Biggest Threat to U.K. Financial Stability - Bloomberg

Goods Orders Get Boost; GDP Growth Inches Up to 1.9% - CNBC

Goods Orders Get Boost; GDP Growth Inches Up to 1.9% - CNBC

Italian Banks Plunge Amid Concern Debt Contagion Spreading - Bloomberg

Italian Banks Plunge Amid Concern Debt Contagion Spreading - Bloomberg

Durable Goods Orders in U.S. Likely Rose in May - Bloomberg

Durable Goods Orders in U.S. Likely Rose in May - Bloomberg

Stocks Set for Weekly Gain, Treasuries Drop; Oil, Copper Rebound - Bloomberg

Stocks Set for Weekly Gain, Treasuries Drop; Oil, Copper Rebound - Bloomberg

Russia May Face Debt Crisis Like Greece - Bloomberg

Russia May Face Debt Crisis Like Greece - Bloomberg

OIL FUTURES: Crude Rebounds On Dollar; IEA Impact May Not Last Long - WSJ.com

OIL FUTURES: Crude Rebounds On Dollar; IEA Impact May Not Last Long - WSJ.com

Buffett Closes ‘Backdoor’ to Berkshire Ownership in Wesco Deal - Businessweek

Buffett Closes ‘Backdoor’ to Berkshire Ownership in Wesco Deal - Businessweek

U.K. Pound Trades Below $1.60 for Second Day; Little Changed Versus Euro - Bloomberg

U.K. Pound Trades Below $1.60 for Second Day; Little Changed Versus Euro - Bloomberg

Oil Rises on Concern IEA Emergency Crude Release May Limit Future Supplies - Bloomberg

Oil Rises on Concern IEA Emergency Crude Release May Limit Future Supplies - Bloomberg

Asia Stocks Add to Weekly Gain, Treasuries Drop - Bloomberg

Asia Stocks Add to Weekly Gain, Treasuries Drop - Bloomberg

Thursday, June 23, 2011

Buffett’s Berkshire Hathaway Trading at Deep Discount | Advisor One

Buffett’s Berkshire Hathaway Trading at Deep Discount | Advisor One

Mark Fisher: Releasing Oil Reserves a 'Sign of Desperation' - CNBC

Mark Fisher: Releasing Oil Reserves a 'Sign of Desperation' - CNBC

South Africa Central Bank Hasn’t Seen Second-Round Inflation, Mnyande Says - Bloomberg

South Africa Central Bank Hasn’t Seen Second-Round Inflation, Mnyande Says - Bloomberg

Oil Prices Were Already Falling, So Why Tap Reserves Now? - CNBC

Oil Prices Were Already Falling, So Why Tap Reserves Now? - CNBC

Porsche Cayenne Sales Surge as China Takes to SUVs - Bloomberg

Porsche Cayenne Sales Surge as China Takes to SUVs - Bloomberg

Oil price tumbles after reserves release - FT.com

Oil price tumbles after reserves release - FT.com

Federal Reserve Chairman Ben Bernanke’s statement on expectations for the US economy on Wednesday was "quietly risk negative," Dennis Gartman

Apple Is Said to Be Preparing IPhone With Faster Chip for September Launch - Bloomberg

Apple Is Said to Be Preparing IPhone With Faster Chip for September Launch - Bloomberg

Big Banks May Get Funding Boost From Basel Bid to Curb Them - Bloomberg

Big Banks May Get Funding Boost From Basel Bid to Curb Them - Bloomberg

GLOBAL MARKETS: European Stocks Seen Lower; Bernanke Weighs - WSJ.com

GLOBAL MARKETS: European Stocks Seen Lower; Bernanke Weighs - WSJ.com

UK Interest Rates - Could 'Rip-Off Britain' Really Print More Money? - CNBC

UK Interest Rates - Could 'Rip-Off Britain' Really Print More Money? - CNBC

Crude Declines on Demand Concerns After Fed Lowers U.S. Economic Forecast - Bloomberg

Crude Declines on Demand Concerns After Fed Lowers U.S. Economic Forecast - Bloomberg

How to Save Greece - BusinessWeek

How to Save Greece - BusinessWeek

Treasuries Gain Most in a Week as Traders Cut Bets on Inflation - Businessweek

Treasuries Gain Most in a Week as Traders Cut Bets on Inflation - Businessweek

Commodities Tomorrow

Commodities Tomorrow

EU Summit: EU to Present United Front as Summit Seeks to Reassure - CNBC

EU Summit: EU to Present United Front as Summit Seeks to Reassure - CNBC

Wednesday, June 22, 2011

Switzerland Price History-Switzerland bucks global crisis | Global Property Guide

Switzerland Price History-Switzerland bucks global crisis | Global Property Guide

7 Reasons Investors Should Trade Options

7 Reasons Investors Should Trade Options

Author:

Equity Scholar

If you are a typical stock market investor, you adopted a buy and hold philosophy and own stocks or mutual funds. If you are a hand-on investor, you do research and carefully select stocks to own. It\'s difficult to beat the market, and most professional money managers cannot do it.

Historically, stock market investing has worked out well. But that provides no comfort for those currently invested. The market recently traded at 12-year lows, and even more frightening is the idea that many investors lost half their assets over the past year.

Why did so many people watch their investments shrink in value and do nothing?

That\'s a difficult question. Investors tend to be long. They own stocks. They don\'t know how to hedge, or reduce the risk of owning, investments. That\'s why options are so important. To me, it\'s a crime that so few stockbrokers help clients to adopt risk-reducing strategies.

 

Here are 7 great reasons why you should take time to learn how options work:

 

1.Hedging - Options allow you to reduce the risk of investing in the stock market. Imagine how investors everywhere would feel if they learned that the giant losses they suffered were unnecessary. By using appropriate strategies, those losses could have been trimmed by 50 to 90

2.Insurance - You can buy insurance that protects the value of your portfolio - just as you buy insurance to protect the value of your home or car. This insurance is expensive, but there are strategies that allow you to own insurance for little, or no, cost.

3.Income - By selling someone else the right to buy your stock at a predetermined price, you are paid a premium that you can consider to be a special dividend.

4.Leverage - You never have to trade a share of stock, and invest far less money than stockholders.

5.No Need to Always Be Bullish - Options allow you to create positions that prosper when the market moves higher, lower, or trades in a range. Traditional investors only prosper when stocks move higher.

6.Limited risk - You can adopt strategies with limited loss, but with high probability of success. The trade off is that profits are also limited. The limited loss nature of so many option strategies is the single factor that makes them so attractive, in my opinion.

7.Indexing - If you prefer to trade a diversified portfolio rather than individual stocks, the major indexes (e.g., S&P 500, DJIA, Russell 2000, etc) have options you can trade.

 

Disciplined trading

 The Equity Scholar Team

www.equityscholar.com

Article Source: http://www.articlesbase.com/wealth-building-articles/7-reasons-investors-should-trade-options-4928611.html

About the Author

Equity Scholar is a market-leading educational service for traders and investors alike. Built to be the best, Equity Scholar offers a full range of educational products and services that provide lifelong learning and support to those seeking improvement in their trading and investing performance.

Our online courses on Equities, Investing, Options, and Forex combine innovative technology with comprehensive trading and investing strategies designed to improve traders of all experience levels. With in-depth classes, live trader chat rooms, and top-rated customer support, Equity Scholar is on a mission to provide our members the best brand in educated trading and investing.

http://www.equityscholar.com/



The New York Times

The New York Times

Greece Vote Turns Spotlight Back on Germany, ECB to See Who Blinks First - Bloomberg

Greece Vote Turns Spotlight Back on Germany, ECB to See Who Blinks First - Bloomberg

Big Name Hedge Funds Brace for a Rough Ride - CNBC

Big Name Hedge Funds Brace for a Rough Ride - CNBC

Tuesday, June 21, 2011

US Stocks End Higher, Nasdaq Positive for Year - CNBC

US Stocks End Higher, Nasdaq Positive for Year - CNBC

Greek PM Wins Confidence Vote But Outlook Is Still Dire - CNBC

Greek PM Wins Confidence Vote But Outlook Is Still Dire - CNBC

Jim Rogers: I did buy some Silver this Week | Beacon Equity: Penny Stocks, Stock Alerts

Jim Rogers: I did buy some Silver this Week | Beacon Equity: Penny Stocks, Stock Alerts

US Real Estate: Distressed Property Sales Drop, Despite Push to Sell — CNBC Realty Check - CNBC

US Real Estate: Distressed Property Sales Drop, Despite Push to Sell — CNBC Realty Check - CNBC

GLOBAL MARKETS-Stocks rally, euro gains on Greece optimism | Reuters

GLOBAL MARKETS-Stocks rally, euro gains on Greece optimism | Reuters

Stock Markets: European Shares Seen Higher Ahead of Greek Confidence Vote - CNBC

Stock Markets: European Shares Seen Higher Ahead of Greek Confidence Vote - CNBC

Crops News, Agriculture News | Agriculture.com

Crops News, Agriculture News | Agriculture.com

Oil Gains a Second Day as Euro Crisis Eases, U.S. Crude Supplies Seen Down - Bloomberg

Oil Gains a Second Day as Euro Crisis Eases, U.S. Crude Supplies Seen Down - Bloomberg

Monday, June 20, 2011

Stocks Cheapest in 26 Years as Profits Rise - Bloomberg

Stocks Cheapest in 26 Years as Profits Rise - Bloomberg

Wheat prices slip on rains, lost risk appetite

Wheat prices slip on rains, lost risk appetite

U.S. Stocks Gain as Luxembourg’s Juncker Says Greek Solution Will Be Found - Bloomberg

U.S. Stocks Gain as Luxembourg’s Juncker Says Greek Solution Will Be Found - Bloomberg

US Stocks Climb, Led by Industrials; Apple Slips - CNBC

US Stocks Climb, Led by Industrials; Apple Slips - CNBC

Asia Grain Outlook: Demand Supports; S Korea Buys 537,000 Tons Corn, Wheat - WSJ.com

Asia Grain Outlook: Demand Supports; S Korea Buys 537,000 Tons Corn, Wheat - WSJ.com

Commodities Tumble to Six-Week Low as Oil Declines on European Debt Crisis - Bloomberg

Commodities Tumble to Six-Week Low as Oil Declines on European Debt Crisis - Bloomberg

Eurozone delay over Greek rescue spooks markets - Telegraph

Eurozone delay over Greek rescue spooks markets - Telegraph

Corn Stocks Plunging as China Adds Brazil-Sized Crop to Demand

Corn Stocks Plunging as China Adds Brazil-Sized Crop to Demand
2011-06-19 15:00:00.0 GMT


By Whitney McFerron and Jeff Wilson
June 20 (Bloomberg) -- Even a fifth consecutive year of record global corn harvests will fail to meet demand for food, fuel and livestock feed, reducing world stockpiles to the lowest in two generations.
Consumption will rise 3 percent in the next marketing year, a 16th consecutive annual gain that saw demand jump 66 percent, according to U.S. Department of Agriculture estimates. Inventory will drop to 47 days of use, the fewest since 1974, the data show. Waterlogged fields in the U.S., the largest exporter, will curb yields, Goldman Sachs Group Inc. says. Corn may jump 36 percent to a record $9 a bushel if conditions worsen, Morgan Stanley says.
Corn purchases are accelerating as droughts and floods limit output gains in everything from soybeans to wheat, driving the Standard & Poor’s Agriculture Index of eight commodities 60 percent higher in 12 months. China, the world’s second-biggest consumer after the U.S., will use 47 percent more than a decade ago, adding an amount greater than the entire crop of Brazil, the third-largest producer.
“There is a storm developing in agriculture,” said Jean Bourlot, global head of commodities at UBS AG in London. “If we have the slightest disruption in any part of the world, the effect on the price will be considerable.”
Corn rose 4.9 percent in Chicago this year, even after dropping 7.4 percent last week to close at $6.60 on June 17.
Prices averaged $7.0225 since Dec. 31, on track for the highest level ever. While investors should be cautious for now, “long- term, I think $6 to $7 is a normal price,” Bourlot said. Costs are rising for Tyson Foods Inc., the biggest U.S. meat processor, and ethanol maker Archer Daniels Midland Co.

Commodity Index

The S&P GSCI index of 24 commodities advanced 5.9 percent this year, and the MSCI World Index of equities was unchanged.
Treasuries returned 3.4 percent, a Bank of America Merrill Lynch index shows.
Global production will rise 5.6 percent to 866.2 million metric tons in 2011-2012, still too little to meet demand of
871.7 million tons, according to the USDA, which combines variable local marketing years for its estimates.
China’s pork consumption doubled in the past two decades and demand for chicken quadrupled, the USDA estimates, boosting requirements for grain-based animal feed. Surging energy prices and subsidies spurred ethanol production, with the U.S. industry using seven times more corn than 10 years ago.
“For the livestock industry, the ethanol industry, and the food industry, it’s going to be a food fight,” said John Cory, the chief executive officer of Rochester, Indiana-based Prairie Mills, which processes corn meal and corn flour. “Any kind of weather problems are really going to be a significant problem.”

U.S. Farmers

Corn fell last week as drier weather enabled U.S. farmers to complete about 99 percent of expected plantings by June 12. A total of 69 percent of crops were in good or excellent condition. Above-average prices will spur farmers to keep sowing even if it means lower yields, Goldman Sachs said in a report June 13. The USDA will release its next acreage and inventory estimates on June 30.
South American producers will also grow more, said Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois. Corn planting starts in September in Argentina and a month later in Brazil.
Demand may not expand as fast as anticipated by the USDA as economic growth weakens. Indexes tracking manufacturing in the New York and Philadelphia regions contracted this month, reports last week showed. Japan entered its third recession in a decade, and the Australian economy shrank the most in 20 years in the first quarter. China raised bank-reserve requirements to a record last week to cool the fastest inflation in three years.

Meat Prices

Livestock owners may cull herds, increasing meat supply, because of higher feed costs. Wholesale choice-beef prices dropped 9.9 percent since reaching a record April 5, and pork is down 2.6 percent from a May 16 high, USDA data show. Bacon retailed at $4.77 a pound in May, 24 percent more than a year earlier, data from the Bureau of Labor Statistics show.
Farmers also may replace corn with wheat in feed, because the grain is the cheapest relative to corn in 15 years.
Effingham Equity, a feed and farm-supply company in Effingham, Illinois, will add wheat in hog-feed rations for the second time in a quarter century, said Mark Tarter, the grains-department manager. Tyson Foods is using some wheat for poultry, said Gary Mickelson, a spokesman at the Springdale, Arkansas-based company.

Higher Feed Costs

Higher feed prices will add $500 million to Tyson’s costs in its fiscal year ending in September, Chief Operating Officer James V. Lochner told investors on a conference call May 9. Corn and soybean meal account for about 42 percent of spending to raise chickens, which generated more than 34 percent of sales in fiscal 2010.
Any decline in demand from livestock producers will be overwhelmed by the anticipated jump in Chinese consumption. The nation will use a record 181 million tons in the year that starts Oct. 1, the USDA said in a June 9 report. China’s pork production will reach an all-time high of 52.5 million tons in 2011, while chicken output will advance to 13.2 million tons, the most ever, according to the USDA.
“People just don’t want to give up a better diet once they shift to eating more meat,” said Steve Nicholson, a commodity procurement specialist at International Food Products Corp., a distributor and adviser on food ingredients in Fenton, Missouri.
He predicts prices above $8 before the end of the year.

Poor Nations Hurt

While higher prices help farmers, they are “devastating”
for the poor in developing nations, Angel Gurria, secretary general of the Paris-based Organization for Economic Cooperation and Development, said in a report June 17. Cereal costs may average 20 percent more and meat 30 percent more over the next decade than in the last one, the group said in the report.
Higher oil prices mean corn would probably have to exceed
$9 to trim demand from ethanol producers, said Dan Basse, the president of AgResource Co., a farm researcher in Chicago. The U.S. will convert a record 5.05 billion bushels into the fuel in the next year, compared with 707 million in 2002, the government estimates. Denatured-ethanol futures jumped 64 percent in the past 12 months on the Chicago Board of Trade.
While the U.S. Senate voted June 16 to eliminate a tax credit and a tariff that subsidize ethanol production, analysts said the measure is unlikely to become law and wouldn’t alter demand as long as fuel prices remain high. Also, Congress hasn’t changed the government mandate for renewable fuels, which will rise to 15 billion gallons in 2015 from 9 billion in 2008.

Gasoline Prices

Regular gasoline on average cost $3.675 a gallon at the pump on June 16, 36 percent more than a year earlier, according to the American Automobile Association. Prices peaked on May 4 at $3.985, the highest in almost three years.
“It’s not going to make a substantial difference to the amount of ethanol produced, to the price of corn, or farm income,” Mark McMinimy, the energy and agriculture policy analyst for MF Global Inc. in Washington, said of the Senate measure. “If oil prices tank and corn prices stay near a high, then ethanol production is going to recede to the level of the mandate. But the mandate continues to go up.”
U.S. farmers are contending with extreme weather in several agricultural states. Rain delayed planting from North Dakota to Ohio, and floods damaged crops along the Mississippi, Ohio and Missouri rivers.

Lost Crops

Those delays increased the risk of supply being lost, said Shawn McCambridge, the senior grain analyst at Prudential Bache Commodities LLC in Chicago. Should hot, dry weather in July or August hurt crops, prices may rise to $8.50, he said. Corn planted in wet soil has shallower roots, diminishing its ability to withstand such conditions.
Temperatures as much as 10 degrees Fahrenheit above normal and dry soil from Texas to North Carolina are already threatening yields, according to Michael Cordonnier, the president of the Soybean and Corn Advisor in Hinsdale, Illinois, a crop forecaster. The concern now is that the heat moves north, he said.
The late planting also puts the crop at greater risk of damage from too much rain during the growing season and frost nearer to the harvest in September, said Allen Motew, a meteorologist at QT Weather in Chicago.
This year’s weather patterns are similar to 1993 and 2009, Motew said. Yields rose in 2009 because the summer months were cool and there was no frost before the harvest, he said. In 1993, yields plunged 23 percent.
“July and August will tell us, because the corn crop is made in that period of time,” said Liddell of Rabo AgriFinance, a unit of Utrecht, Netherlands-based Rabobank Groep. “More things have gone wrong than have gone right.”

View: Wealth Is the Way to Fulfill China Revolution - Bloomberg

View: Wealth Is the Way to Fulfill China Revolution - Bloomberg

Europe Delays Decision on Emergency Loans to Greece - CNBC

Europe Delays Decision on Emergency Loans to Greece - CNBC

Wednesday, June 15, 2011

Why a Trading Plan Is Essential When Beginning Investing

Why a Trading Plan Is Essential When Beginning Investing

Author: Mick Brooks


If you were starting your own business, you would normally put together a business plan - if you required bank or private finance this would be a requirement - but quite honestly even if it were your money, more especially if it were your money, you should prepare one too. So why do you think it should be any different with the business of trading?
What is the purpose of the plan? Having a trading plan adds another layer of discipline, which is one of the most important aspects of trading. How much money have you lost on a crazy impulse trade for a share which you thought couldn't possibly go any lower? I would say that the plan is a pre-requisite for trading - if you can't find the time to sit down and think through how you intend to trade, you really shouldn't be putting your capital at risk.
What should this trading plan contain? There is really no fixed format. A good plan plays to a trader's strengths. The trading plan must be custom-built, because every trader has different time horizons, tolerance for risk, and emotional make-up, and the plan must reflect this. The trading system, as set out in your trading plan, should have been back-tested over a reasonable period to ensure that it has a positive expectancy.
In order to give you a head start on the things you should consider including I am happy to share my classification with you, as follows:

· Strategy - which markets and instruments you will trade

· Profit Goal - your target

· Position Sizing - how much you will buy

· Daily Trading Plan

· Entries - when and why you will buy

· Stop Losses - when will you know that a trade has failed?

· Open Positions - how long you will hold a trade

· Exits - when and why you will sell

· Grading your trades

· Emergency Back-up Plans

· Record Keeping

This is not meant to be an exhaustive list, but this plan is better than more than 50% of other traders out there, because they don't have one at all!
Once written, the trading plan need not change very often, if at all. It should be revisited occasionally to ensure its continuing relevance (and to make sure you are still sticking to it!), but it is not a document that drives specific daily or weekly actions - those actions should be set out in your daily or weekly game-plan.

Article Source: http://www.articlesbase.com/investing-articles/why-a-trading-plan-is-essential-when-beginning-investing-4892448.html

About the Author
Mick Brooks is an educator, a public speaker, and an avid stock market investor. As a UK-qualified CPA, he thought making money in the stock market would be easy, but his 'education' cost him around $30,000, so now he makes it his goal to help others to avoid replicating the more obvious mistakes. Visit his website, http://www.beginning-investing.net for more advice and information, and don't forget to pick up your FREE copy of the 'Investing Secrets - Day Trading' report!




Monday, June 13, 2011

Gann Calculator Explained

Gann Calculator Explained

Author: soumya ranjan panda

Gann Calculator Explained

Introduction: Gann calculator in the initial days of its introduction got very good response from the traders and investors.  Many experienced the benefit of this calculator and expressed their experience and difficulties. I am going to describe all these aspects in this user manual. It is an authentic tool and its construction-base-formulas you can get from my books Gann’s Method . As I have said to all my readers and seminarians before that it is not a secrete tool. It is the simple mathematical formula as given by W.D.Gann and I have just simplified and used it for developing this application.  I feel it is the need of the time I should explain how to use this calculator with some example.

Swing Trading:  Swing Trading is the base and the mother of this calculator. In my words the definition of Swing Trading is “trade in the direction of the price movement”. Price movement of a stock as explained by Gand and Elliot follows the harmonic motion. One step forward I will say that it follows the random Brownian motion. Who determine this motion? The traders or the investors determine. The behaviour of a trader or investor is again driven by the fear and confidence. I will not use the word greed in this context. As a swing trader you need to find out the price points which generate fear or confidence. These are the points I can name as swing turning points or resistance and support points. Though this is a complex job but now a day it is getting simplified by the use of s/w tools. Gann’s calculator does the job of calculating these swing turning points which I have named as the resistances, supports, buy entry, sell entry points.

Gann calculator: The swing 2 supports and resistance point which I belief as the decisive point for a buy or sell entry, is being named as buy entry and sell entry in the calculator respectively. In gann’s calculator I have used the square root formula and degree to factor formula for calculating the different supports and resistances. I have taken 180 degree factor as 1 and based on this in every 15 degree and its multiple I have calculated the resistance and supports.

You must ask me why 15 degree and its multiples? Considering one full day as 24 hours and one cycle as 360 degree I found each one hour in a day is 15 degree. My second argument is elementary mathematics says that 1 degree as 4 minutes hence one hour is 15 degree .

You must ask me why should I belief on the last hours swing high and low for forecasting the future price? In many statistical tools like MACD, Bollinger band or finding the chart patterns you are using much older data points. Even in intraday chart also if you are using these tools then without your knowledge you are using many past data points. Hence it is nothing wrong in using only two dynamic swings high and low data point in this calculator.

How to use it? Take past one hours swing high and low as input it will calculate the resistances, supports and key resistance and key support levels. The buy entry and sell entry prices calculated by the Gann Calculator are nothing but the Swing 2 resistance and support points. In less volatile day you may encounter the congestion. Congestion is nothing but the buy entry and sells entry prices will be placed very near to each other say with Rs2 to Rs 3 difference. Same also you can encounter in the resistances and supports. In this case change your swing high and low points to a wider one or make the buy entry or sell entry above or below the 1st target point or trade between the band means between any two resistances, supports, and stop loss points. Make a practice to change the swing high and low points time and again in every one hour. If your position runs in profit then use the trailing stoploss technique to maximise profit.

This calculator is working and I have hundreds and thousand of proof for that. If you feel that why I am sharing this wonderful tool with you then I have the simple answer that knowledge is God gifted and I want to share with you. It is upto you to accept it or not. Critics will never stop me sharing the knowledge with any one. I will advise if any one is getting pained my by act of sharing then better stop thinking about this calculator.

My way to identify the swing high and low:

You can follow any one way for identifying the swing high and low.

  1. High and low price in a particular time frame. The minimum time you must take for the observation is one hour.

  2. Take the previous days last hour high and low for next days 1st hour trade provided global sentiments must be neutral during the non trading hours of our market.

  3. If the current price action of the script is trending then take the low or high follows the trend high or low.


  4. If you encounter congestion then take the high and low in greater time interval.

Now see some examples which I feel will thrill you. I will also explain how you will enter a trade.

Example 1:  consider the Nifty spot one hour data from 10 to 11 a.m on 12th august 2008.Its high was 4634 and low was 4598.

Using this data in the intraday calculator I found that my key supports are 4600-4566-4498 and resistances are 4631-4666-4735. You can use this data in the calculator and test its accuracy.

At 11:05 a.m. it has fallen and found support at 4565, 11:30 it touched high 4599 and fallen. Hence it is confirmed in the next half an hour nifty was very much within the band of my calculated support 1 and support 2.

From trading point of view if I miss the chance to enter the short trade at 4611 then better in this junction I will wait or change my data points. Second observation is the bounce from the low 4565 failed to cross the 1st support 4600. So now the support turns into resistance as per basic technical analysis concept for next half an hour. In this junction also I can go short with my initial stoploss as 4611 and second stoploss as 4631 and target as 4565. See in the next half an hour nifty created new low of 4557 at 11:52 a.m.

In this example I have used the past one hour high and low points for my observation and calculated all the resistance and support values for the next hour. It is not guaranteed that I will achieve my target or stop loss in the next one hour. It is just a mathematical assumption based on my observation. I will suggest all of you to treat this calculator as an alternative software tool as you treat all other indicators and tools.  

Example 2: consider reliance industry high and low in a time period from 10 a.m. to 12 p.m. on 13th august 2008. It was a trending day for reliance because it was creating higher high and higher low. My Swing high and swing low for this two hour period is 2353 and 2315 respectively.  

Using these two values on the gann calculator I got the following values:

Long entry price was: 2331 target 2339-2347-2363-2412

Short entry price was: 2337 target 2329-2320-2304-2256

Since it was a trending market for RIL and it was creating the higher high and higher low and the current price is much above my second target point and trending upward. I will use this swing action to enter a buy trade keeping my 1st stoploss as 2339 which is my key resistance, which turn into the support and my target will be 2363. I will come out of the trade at 2363 or slightly below that because this is the 3rd level of target and important resistance point.  

Again I have observed that after touching the high of 2373.65 the price has started retracing back. Now I will change my swing low and high. The low as 2339 and high as 2373.65.  The stock price 2339 is the low which the stock has made just before making this high of 2373.65. You can say this is the high following the low. Notice it carefully I have not taken the hourly high or low rather I have taken the latest low preceding the high.  

Why this deviation in principle?  If the current price action is against the previous trending nature of the price then you need to make this deviation. In the second case scenario if the price continues its trending behaviour then also this deviation in principle will come in to focus.

Using these two values 2373.65 and 2339 I got

Short entry price was: 2358

Long entry price was: 2355

This is congestion because the difference is only Rs 3 /- so now I will shift my focus to the 1st level of target for both the long and short. As per my calculation 1st long and short targets are 2363 and 2349. These two prices will act as my new long entry and short entry points. More precisely I will buy reliance above 2363 and sell below 2349.  My stoploss for the sell entry will be 2358-2374-2398 and stoploss for buy trade will be 2355-2339-2314

Observe the second part of the calculator which flags the important support and resistance points. my entry points also coincide with the 1st level of resistance and support.

As you can observe from the chart at 12:35 p.m after drifting to the level of 2362 the stock has a minor bounce back to 2366 and the greater downward action started once it has broken the level of 2349. My target level of short entry was 2342-2326-2277. You can say it as a coincident or a mathematical wonder.

  1. At 1:30 p.m. stock touched 2341 and bounced back to 2349 level.


  2. At 2:20 p.m. stock touched the day’s low of 2326 level.

Though Gann’s other method is to calculate the time action but it is beyond the scope of this calculator. You can read all those methods in my book Gann Method

Read the following section for white paper proof:

#1: At 10:20 p.m. taking the nifty future high as 4302 and low as 4279 on the Gann calculator . We have identified the swing turning points as follows. Buy above 4301 for target 4312-4323-4345, stop loss 4279-4246 and sell below 4280 stop loss 4335 and target 4269-4258-4237. At 10:20 Nifty future was trading at 4283

Using the current price and past time squaring action the targets and stop loss was expected to trigger before 2 p.m. . In fact once the swing turning point of sell entry was triggered the 1st target 4269 was achieved within 15 minutes and then it followed the 2nd target and made intraday low of 4256.65 till 2.30

#2: at 11.05 taking  RIL future high as 4156.4 and low as 4120 on the Gann calculator . We have identified the swing turning points as follows. Buy above 2135 stop loss 2120-2097 and target 2143-2151-2166 and sell below 2141 stop loss 2156-2180 target 2133-2126-2110-2065. Though the stock was quoting at 2125 at that time but I will not make a short entry because my 2nd target for the short entry is almost achieved. Around 11:30 we got the swing buy price trigger on the chart 2135. As per the current price and past time squaring action the 1st target for the buy entry must come within one hour and 30 minutes from the buy entry trigger time. At 12:08 I achieved my 1st target 2143 and retraced back from 2147 level and touched the short entry trigger price below 2140 at 12:20. And achieved the 1st target around 1 p.m. . . .

Any one can master the gann’s price squaring action just with simple practice and little bit of analytical knowledge and by using the FREE calculator available in my web site www.smartfinance.in

on 2009 i have felt the need to modify this calculator and used the single price point for decession process. This chnage has produced very good result for intraday trade decission. please read the manual associted with it in the Intraday Gann calculator page to know more about the use.

Conclusion: this Gann’s calculator is a mathematical application. It is being developed using the price to price squaring action of Gann’s method. It is my advice to all the traders/ investors to treat this application as an informative and educational tool.

Regards

Soumya Ranjan Panda

http://www.smartfinancein.com/

Disclaimer: The information or data contained in this document is neither guarantees not offers any recommendation to buy or sell any security. The mathematical simulation process used in the Gann calculator or explained in this article does not offer any recommendation to buy or sell any security. The author or the publisher or the developer of this application does not responsible for any kind of trading loss incur by the trader or the investor by the use of this application.

Article Source: http://www.articlesbase.com/day-trading-articles/gann-calculator-explained-524201.html

About the Author

my education :

1.graduate in Mathematics

2.Post Graduate in Computer Aplication(MCA)

2.NCFM,AMFI

My recent Publications

1.Gann's Method

2.Fibonacci Technique

3.Master's Key to Future & Options

4.Technical Analysis three voluemes

   

Trading Systems

Trading Systems

Gann calculator explained

Gann calculator explained

Sunday, June 12, 2011

Futures Option Spreads - Delta Neutral Trading

Futures Option Spreads - Delta Neutral Trading

There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.

Another way is to buy and sell options based on their deltas. Some of these trades are called delta neutral trades. Delta neutral trades are option trades in which the total delta of all the options is Zero. At the money options have a delta of 50.

If you buy an at the money call, you will have a delta of +50.
If you sell an at the money call, you will have a delta of -50.

If you buy an at the money put, you will have a delta of -50.
If you sell an at the money put, you will have a delta of +50.

Basically, the deltas will be determined by where you want the market to go. Think of it this way: If you sold an at the money call option, where would you want the market to move to? You would like it to go lower. So, you would have a delta of -50.

If you look at most at the money options, you will find that they are usually not at 50. That is because they are not exactly at the money. We still refer to these as the at the money options because they are the ones that are the closest to being there. It might have a delta of 47 or 53.

If you purchased one at the money call and one at the money put, you would be delta neutral. The call will have +50 deltas and the put will have -50 deltas. The total is zero. This is a very simple delta neutral trade.

Another delta neutral trade is a ratio back spread. An example of this trade would be to sell an option that is at the money and buy a greater number of out of the money options. You might sell one call option at the money (delta -50) and buy 2 call options out of the money (delta +25 each). You would be delta neutral. You would want to put this on for a credit or at even. You can also put it on for a debit but then you would care a little about market direction.

If you put it on for a credit or even money and the market was lower at expiration of the options, you would break even or earn a small credit. If you put it on for a debit, you would lose the debit amount if the market was lower at expiration of the options. In either case, if the market went sharply higher, you have a chance for unlimited profit, because you have purchased more options than you sold.

Most traders teach that ratio back spreads should be done in the far months only. This is because you have more time to be correct with a big move. The problem that I have found is that you are giving up too much for the time advantage. The options you buy out of the money are not priced at an advantage compared to the ones at the money. You can look at the theta to see how much each option will lose per day or per week.

You can also see that in order to have a lot of time left in the trade, the difference in strike prices between the option you sell and the options you buy are too much. It will take a bigger move before you have unlimited profit potential.

If you are expecting a big move, think differently than the norm and start to look at options that have 20 -40 days left. The options you buy compared to the options you sell, should be priced better. Everything is in relation to something else.

So the next time you hear someone recommending the same old ratio back spreads, take a look at the difference months to see where the real advantage is.

For more information on these non-directional option techniques, click below:

Click Here!

Tuesday, June 7, 2011

How to get margin of safety with Commodities.

How to get margin of safety with Commodities.

According to Warren Buffet "Margin of Safety" are the three most important words in investment. This concept is also the corner stone of the philosophy that Benjamin Graham taught.

To get an answer of what margin of safety would mean in terms of investing in commodities , we need to be able to value a commodity relative to it's price. The lower the price in relation to the value, the higher the margin of safety. Commodities are also non-income producing assets, in fact there is a cost to carry the commodity. This cost is made up by the cost of money as well as the storage cost of the relevant commodity. The prudent commodity investor should thus factor in this cost when calculating value and should be more conservative in valuation to increase the safety margin.

How do we value a commodity? A whole book can be written about the valuation methods for commodities but we will try to capture a few key concepts.

- Production cost
This is the cost of producing the commodity. In the case of grains that will be the cost to produce per bushel. Unfortunately this is a difficult calculation at the best of times.. Sources to get this information would government agencies such as the US Department of Agriculture or the US Department of Energy.

-Producer break-even
This is the price under which some producers will start losing money. If this situation continue for too long, producers will have to stop producing or go insolvent. This method is handy when looking at metals or other commodities that are mined. Sources for information are the corporate reports of mining companies.

Supply/ Demand Ratios
- This method is widely used to determine a relative value number. This method should be used conservatively though, especially when a commodity is priced above production cost. The price might already factor in low supply/demand ratio.


So, this is a mine-field and the best approach is to be as conservative as possible in valuation. As a rule of thumb: If we are close or under production cost, producers are not making money or going out of business and prices have been depressed for a long time, the case for a value investment could be made..


Wheat harvest report: Day 1

Wheat harvest report: Day 1

Agrimoney.com | wheat prices - BarCap and UN at odds on wheat prices

Agrimoney.com | wheat prices - BarCap and UN at odds on wheat prices

U.K. Retail Sales Slump - WSJ.com

U.K. Retail Sales Slump - WSJ.com

Sunday, June 5, 2011

Wheat Rallying 20% as Parched Fields Wilt From China to Kansas

Wheat Rallying 20% as Parched Fields Wilt From China to Kansas
2011-06-05 16:00:01.3 GMT


By Luzi Ann Javier, Madelene Pearson and Whitney McFerron
June 6 (Bloomberg) -- The worst droughts in decades are wilting wheat fields from China to the U.S. to the U.K., overwhelming Russia’s return to grain markets and driving prices to the highest levels since 2008.
Parts of China, the biggest grower, had the least rain in a century, some European regions are the driest in 50 years and almost half the winter-wheat crop in the U.S., the largest exporter, is rated poor or worse. Inventory is dropping 8.8 percent, the most in five years, Rabobank International says.
Prices will advance 20 percent to as high as $9.25 a bushel by Dec. 31, a Bloomberg survey of 14 analysts and traders shows.
Wheat as much as doubled in the past year as crops failed, spurring Ukraine and Russia to curb shipments and increasing the U.S. share of global sales by the most since 2004. Russia ending its export ban on July 1 and Ukraine lifting quotas may not be enough as crops wither elsewhere, fuelling gains in food prices which the United Nations says are already near a record.
“In 32 years, I’ve never seen so many problems in so many places,” said Dan Basse, the president of AgResource Co., a farm researcher in Chicago. “We’re concerned about the world story now,” said Basse, who has been studying agricultural markets since 1979 and expects prices as high as $10 this year.
For Paolo Barilla, vice chairman of Parma, Italy-based Barilla Holding SpA, the largest pasta maker, the yo-yo price moves are his biggest business worry, he said in an interview last month. Rising demand means grains will keep costing more, John Bryant, the chief executive officer of Battle Creek, Michigan-based Kellogg Co., the largest U.S. maker of breakfast cereal, said in a conference call last month.

Grain Prices

Higher prices will help U.S. farm income rise 20 percent to a record $94.7 billion this year, the government estimates. It also means the most profit ever for Moline, Illinois-based Deere & Co., the largest maker of agriculture equipment, analysts’
estimates compiled by Bloomberg show.
Futures traders anticipate rising wheat prices through March 2013, according to data from the Chicago Board of Trade.
Speculators almost tripled their bets on gains in the two weeks ended May 31, figures from the U.S. Commodity Futures Trading Commission show. The most widely held option gives the holder the right to buy wheat at $9 for July.
Wheat fell 2.6 percent to $7.7375 a bushel this year, trailing the 11 percent gain in the Standard & Poor’s GSCI Index of 24 commodities. The MSCI All-Country World Index of equities rose 2.8 percent and Treasuries also returned 2.8 percent.

Bloomberg Survey

Prices were last as high as the $9.25 predicted in the Bloomberg survey in 2008, the middle of a three-year period when the U.S. State Department estimates more than 60 food riots erupted worldwide. No one is predicting a return to the record
$13.495 reached in February of that year, and global inventory will still be 44 percent higher than it was then, according to U.S. Department of Agriculture estimates.
Wheat slumped 7.4 percent in the two days after Russia, formerly the second-largest exporter behind the U.S., said on May 28 its ban would end.
The country’s total grain harvest, decimated last year by the worst drought in a half century, may expand as much as 48 percent to 90 million tons this year, the Agriculture Ministry estimates. Exports of wheat will more than double to 10 million tons, the USDA said in May.
“The fundamental of Russian exports has to keep one in a bearish stance until some new supply or demand issue develops either in wheat or in corn,” said Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois. “My expectation is that wheat continues in the downtrend.”

Northern Africa

Demand from some of the biggest importing nations may decline as their harvests improve. Egypt, the largest buyer, will purchase 6.9 percent less in the 12 months ending in July
2012 and Morocco 46 percent less, the USDA estimates.
Rolling four-week grain exports to northern Africa from France, now the second-biggest wheat exporter, fell 49 percent since the end of March, according to data from the port of Rouen, the main grain hub. The drop suggests no return to the panic buying in the first months of the year when the nations expanded stockpiles to damp prices as riots erupted from Egypt to Morocco.
The anticipated decline in import demand won’t stop global purchases from rising, the USDA forecasts.
China may double its wheat imports to about 3 million tons this year, said Li Qiang, the managing director at Shanghai JC Intelligence Co., the biggest independent agricultural market researcher. The crop may slump to 96.5 million tons because of drought, below the 115.5 million predicted by the USDA, he said.

Corn Seeds

About 80 percent of China’s wheat crop is irrigated, alleviating damage, Dan Manternach, an economist with Doane Advisory Services, an agricultural researcher in St. Louis, said at the end of May. In areas without irrigation, lack of rain in the next three weeks may again threaten yields, he said.
“It’s been the driest year in my memory,” said Wang Peijun, 35, a farmer from the east-central province of Henan, China’s biggest growing region. “It’s too inconvenient, too costly to irrigate,” said Wang from Jiaozuo City, who uses the crop to pay for corn seeds planted after the harvest.
Wheat output in the 27-nation European Union may drop 3.5 percent to 131 million tons this year, according to the median of seven estimates in a Bloomberg survey of analysts and traders at the end of May. France had its driest spring in 50 years, and April in the U.K. was the hottest in 352 years, forecasters in those countries have said.
“I’ve been farming here for 30 years and it’s the worst I’ve ever seen,” said Robert Law, 53, who cultivates about 5,000 acres of grain in Hertfordshire, England. “The drought has definitely gone on longer than we’ve ever had before.”

French Harvest

The harvest in France, the EU’s largest, will slump 12 percent to a four-year low, according to Agritel, a Paris-based farm adviser. German wheat output will drop as much as 4 percent, according to Hamburg-based Alfred C. Toepfer International GmbH, a grain trader which had previously expected a gain.
Barilla, the pasta maker, sometimes has no choice other than to raise prices and that is very “disturbing” because “people will never understand why the price has such a dramatic increase in a very short time,” Paolo Barilla told Francine Lacqua on Bloomberg Television’s “On the Move.”
The world is in a “long-term upward trend on cost of goods,” Kellogg’s Bryant told investors on a conference call a month ago. “So we would look at 2012 and say, yes, it’s probably going to be inflationary.”
Deere will report net income of $2.71 billion in its fiscal year ending in October, from $1.865 billion a year earlier, according to the mean of seven estimates compiled by Bloomberg.

Weather Service

About 44 percent of the U.S. winter-wheat crop was in poor or very poor condition by May 29, the USDA said. Rainfall in the previous two months was less than half of normal in much of Kansas, Oklahoma and Texas, the biggest producers of winter varieties, the National Weather Service estimates.
“On these windy days, there’s just dirt in the air and the sky is brown,” said David Cleavinger, 53, who farms 3,500 acres in Wildorado, Texas, and already lost about half of his 1,200 acres of wheat. “Prices are great right now, but you’ve got to grow a crop. If you don’t produce a crop, it doesn’t matter if wheat is $40 a bushel.”
Rain is delaying the planting of spring wheat in North Dakota and Montana. Plantings may be more than a million acres below what the USDA estimates, according to Mike O’Dea, a risk management consultant with INTL FCStone in Kansas City, Missouri.
Forecasters already are cutting their production estimates.
The London-based International Grains Council did so on May 26, and the USDA will probably have to as well, Rabobank, Standard Chartered Plc and Barclays Capital have said.
“I’m overall still bullish to the wheat market even with the news out of Russia,” said Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri, who predicts a high of $9.75 this year. “There are still enough problems in many growing areas around the world to keep the market well supported.”

Thursday, June 2, 2011

Are we heading for another Great Depression?

Hangover?

The markets are going to have a bit of a hangover after yesterday. I see Asian stocks are weaker and I fear that we might see some short term liquidation. I do think however that this will finally give us the opportunity to buy something at value. The Corn / Wheat spread also looks interesting