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The real money is in wheat futures

lil dickie said: "Thats right. You wanna earn big then you gotta look at [url=http://www.forbes.com/markets/feeds/afx/2007/09/05/afx4083466.html]wheat futures[/url]. Fear of a wheat shortage is driving prices up. [quote] Wheat has set a series of fresh highs in recent weeks on fears crops from key producers Australia and Argentina have been affected by drought. 'Every day brings a new record, and we don't really know where this is going to stop,' said one trader. 'The European market is following the rise in the US market, which in its turn is following the European market. It's endless.' The high comes a day after US wheat futures traded on the Chicago Board of Trade hit a new record above 8 usd per bushel, climbing to their daily trading limit. 'The price of wheat has more than doubled year-on-year on both the US and European futures markets,' a trader noted. '(Supply fears) will persist for as long as it fails to rain in Australia and Argentina.'[/quote] Australia is the world's leading supplier and is facing a second year of drought. Their bad news could be investors happy days. Wheat is where its at."

Rickster said: "Sold my wheat a few days ago."

newinvestor123 said: "Leave it to Rickster to be on the ball..."

Rickster said: "Well, I missed out on the very recent runup. I originally thought it might go to 7.50, but when it hit $7.00, I figured enough was enough and let them have mine. But then, the next day it spiked up. No sweat. I was happy to get 7. The recent runup looks like a blow off top to me. If I hadnt sold at 7, I would damn sure be selling now at 7.80. Having said that, watch it go to 10. Commodities can go crazy."

lil dickie said: "The shortage seems real enough. Maybe prices will continue to rise? But at least you made some money on wheat already!"

Pb3190 said: "You mentioned it is the second year of the drought, could the same problem this year already be priced in to some extent?"

lil dickie said: "[QUOTE=Pb3190]You mentioned it is the second year of the drought, could the same problem this year already be priced in to some extent?[/QUOTE] I dont think they were planning on the second year of drought in Australia. But I would assume some of it is priced it. BUT a shortage is still a shortage. Wheat is used in almost everything."

JAP said: "Don't chase it... you'll be sorry. :sad010:"

Pb3190 said: "I know, I know. I already learned that lesson not only from paper trading but also with an REIT. :sad010:"

lil dickie said: "Too bad I dont have a farm :)"

Rickster said: "Everyone should have a farm. (A real farm. Not one of those 9 acre so called farms like they have in the east)"

AlfredSokol said: "[QUOTE=Rickster]Everyone should have a farm. (A real farm. Not one of those 9 acre so called farms like they have in the east)[/QUOTE] No question. People would be a lot healthier for sure."

Pb3190 said: "I assume by your post you mean that 9 acres is nothing? I wish I could feel the same way, but unless you live far out from the city, that much land is a lot."

LongArm said: "I'd kill for 9 acres. (Eh, not 9 acres of farmland though.)"

AlfredSokol said: "9 acres oceanside would be nice :)"

Rbreb13 said: "I wouldn't mind having only 9 acres around here. It'd be worth a small fortune here unless it was a cliff or something like that."

Rickster said: "[QUOTE=Pb3190]I assume by your post you mean that 9 acres is nothing? I wish I could feel the same way, but unless you live far out from the city, that much land is a lot.[/QUOTE] Not trying to say 9 acres is nothing. 9 acres in the heart of San Fransisco would be priceless. Just saying 9 acres isnt a real farm. The reason I mentioned it is that I once looked into farm values in NJ. They have all these so called horse farms that are just big enough to meet some state definition of a farm. 9 acres may not be the magic number, but it was something like that. My farm is 160 acres (half mile on each side) and I consider it very small. What cracks me up are the TV adds for 40 acre ranches in Montana. 40 acres is nothing in Montana. A high school buddy's family runs 15,000 acres in SW Kansas (similar country). Now that is a ranch. (Bonanza theme song heard in background). But it is worth far less than 9 acres in SF. P.S. No, I am not a farmer. (Not that there is anything wrong with being a farmer.) I lease the land to a farmer. For me, it is a place to get away. My own little piece of paradise. It is also a damn good investment. OBTW. I do live far out from the city. But not far enough."

AlfredSokol said: "Rickster, you can admit it: your grow you own salad!"

Pb3190 said: "I think I would really enjoy living away from a big city, but considering I plan on going into business or some type of finance field, I guess I'll just have to wait."

lil dickie said: "Wait until you get rich and then retire to some land."

Pb3190 said: "By that time, I will be hoping for the tropical island. And maybe a boat to go along with it. :th_coolio:"

lil dickie said: "[QUOTE=Pb3190]By that time, I will be hoping for the tropical island. And maybe a boat to go along with it. :th_coolio:[/QUOTE] I like the way you think."

Harry said: "[QUOTE=Rickster]Everyone should have a farm. (A real farm. Not one of those 9 acre so called farms like they have in the east)[/QUOTE] I guess funny farms don't count. :D"

Harry said: "[QUOTE=Rickster]Not trying to say 9 acres is nothing. 9 acres in the heart of San Fransisco would be priceless. Just saying 9 acres isnt a real farm. The reason I mentioned it is that I once looked into farm values in NJ. They have all these so called horse farms that are just big enough to meet some state definition of a farm. 9 acres may not be the magic number, but it was something like that. My farm is 160 acres (half mile on each side) and I consider it very small. [/QUOTE] Hey don't knock Jersey farms...we do still have a lot of massive farms with all types of crops. We're just not as big as places like Nebraska or Iowa but Once you get well out of the urban areas land prices and land demand drops...and we have new land preservation acts blocking or restricking develop. [url]http://www.state.nj.us/jerseyfresh/[/url] There's a farm right behind my condo complex that is so big that the guy who owns it ( a green fanatic and a movie star) uses a helicopter to survey the land. We also have a lot of farmers markets through out the state. Farmera and even Amish come as far as Pennsylvania."

lil dickie said: "When I think of New Jersey I think of nuclear power plants."