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Norman:
If you could find a way to process soybeans, cotton and
sugar and make a substance to burn in a car, this would
force these commodities up and the increased supply of
a fuel substitute would force crude down.
That would turn out to be a gangbusters spread.
Norman E.
Scaletrade@xxxxxxx wrote:
>
> 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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