kb, sounds like you are a farmer, correct? Yes it ...

2008-02-29T10:49:00.000-05:00

kb, sounds like you are a farmer, correct? Yes it sounds quite sad what these hedge funds do to any "hot" market. I am only trading this stuff, but many people rely on it for their livlihood so as I wrote in the piece, it is quite pathetic how it's been smashed to pieces.

As for the bubble, they can go much longer than anyone anticipates so I expect this one (if it is) to continue on. And weather is a dramatic wildcard, that is impossible to gain. It does sound like Australia might finally have a good crop after 2 years of drought. Much like oil though, I think we are running into demand problems as much as supply issues. i.e. even if supply is solid we have too much demand. In crude, inventories in US are up, but crude keeps going up... its a global commodity - much like agriculture is now. It will be interesting to see how it plays out but I expect "hot money" to continue to flow to commodities, especially (until) the market makes a sustained move. The weaker the equity market is, and with bonds yielding NOTHING (negative returns when accounting for inflation) they will run to the 1 market where positive returns are made. Further inflating a bubble. Thanks Ben.

I have relied on the futures market to hedge my pr...

2008-02-28T22:31:00.000-05:00

I have relied on the futures market to hedge my production in corn and wheat. It is so true that these markets are now so disfunctional that ag producers like myself will no longer use them. I truly believe this wheat market is at a bubble. You have had so much money thrown at these ag markets by spring you could see a major setback with normal weather.

Comments on Fund My Mutual Fund: The Hedge Funds are Coming! The Hedge Funds are Co...

kb, sounds like you are a farmer, correct? Yes it ...

I have relied on the futures market to hedge my pr...