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In a message dated 12/30/1999 6:57:17 PM EST, nwinski@xxxxxxxxxxxxxxx writes:
> I have the spread on: Long Soybeans, Cotton, & Sugar,
> Short Crude Oil.
Norman, Tom, et al,
Nice to see some real commodity talk, but I have a question. I can
understand why crude and its products will come down if y2k is a non-event,
but I do not understand why this would make the edible commodities rise.
Personally I hope they do...I have been long cotton and the grains for some
time, based on the fact that they are relatively cheap historically, and I
believe in the law of supply and demand (eventually). But it seems to me
that y2k problems would be more apt to rapidly raise the price of cotton and
the grains, than would y2k as a nonevent. In other words, if y2k causes the
foods and fibers to rise, because of supply disruptions for example, then it
seems to me that crude should also rise more. Or is it just that crude has
already discounted this, and the other commodities have not. Just sign me
Confused,
Larry Brown (no relation to any other Browns on the list!)
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