I don't watch the KC contracts. Not enough liquidity for me. CHI - July 09 - Been long since June 9th @ 9.0000. I have a target of 11.3500 but I have a tight stop at 9.2725. I liked the last LONG lfrom the end of Sept much better. I'm missing some data for March that I'm currently fixing so sorry I can't help you more there. Overall, like I said earlier, eWheat is trying to creat a top but for me every extreme pullback that doesn't break support is just another reason to add to the LONG position.
Sure about that? The subsidies increase the margin of the producer (thus justifying them to spend more on corn), but the market price should be similar to the fuel it substitutes, gasoline (or fractionally equivilent based on mileage .. ie if it has 90% of gasoline's energy, it should be 90% the price of gasolne) assuming all other variables are equal. According to this, the problem is distribution. http://www.nytimes.com/2007/09/30/business/30ethanol.html And then on the other side, I'd imagine another problem is depressed gasoline crack spreads as well. If the gas cracks expanded to $30 right now, I'm sure ethanol producers would have a better market to produce in.
I rarely take naked pos. in any grain or anything for that matter so I rarely watch any kind of induvidual price movement, just spread spread spread. I know I greatly diminish earning capacity but risk is well maintained. And with how out of whack the Chi wheat spreads got last year there was huge huge huge profit potential. Thanks prof
Okay, I'm a noob on ags. Someone give me a reason why corn-dependant entities such as ADM, Pacific Ethanol and many, many beef, chicken and even fertilizer companies won't take it on the chin since the flooding in Iowa and the heavy rains in the midwest, as these events have impaired planting and growing. Thanks.
article on Marketwatch.com right now about that. Specifically, the chicken guys. Stocks are getting hammered.