From Wild Oats news letter
From the Floor
Opinion derived from traders on the Winnipeg Commodity Exchange
Farmers know the satisfaction of owning grain, ideally in your bin on your property. Ordinary people don’t have it so easy.
The American government has decided to make it difficult for ordinary investors to own grain. Some voters believe that reining in funds, the only practical way for most investors to own grain, will result in cheaper grain.
America’s SEC announced that Deutche Bank would divest itself of CBT grain futures above a limit. Deutche Bank, and others, buy CBT and ICE grain futures and repackage for sale to retail investors.
In 2007 long-only funds did drive the price of grain futures higher than fundamentals suggested. But it works on the downside as well. Spec funds are bigger than index funds and usually play the short side.
Holding grain as one of an investor’s asset classes has become popular, especially after the spectacular run-up in prices in 2007. Grain futures as an investment will move to China, where the Dalian Commodity Exchange already trades more soybean volume than CBT.
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From the Floor
Opinion derived from traders on the Winnipeg Commodity Exchange
Farmers know the satisfaction of owning grain, ideally in your bin on your property. Ordinary people don’t have it so easy.
The American government has decided to make it difficult for ordinary investors to own grain. Some voters believe that reining in funds, the only practical way for most investors to own grain, will result in cheaper grain.
America’s SEC announced that Deutche Bank would divest itself of CBT grain futures above a limit. Deutche Bank, and others, buy CBT and ICE grain futures and repackage for sale to retail investors.
In 2007 long-only funds did drive the price of grain futures higher than fundamentals suggested. But it works on the downside as well. Spec funds are bigger than index funds and usually play the short side.
Holding grain as one of an investor’s asset classes has become popular, especially after the spectacular run-up in prices in 2007. Grain futures as an investment will move to China, where the Dalian Commodity Exchange already trades more soybean volume than CBT.
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