is it time to BUY some grains?
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awesome DrEvil - but you don't think we'll re-test the 1350 all time highs?? I'm thinking we might have a string of insane limit up days just like the good ol days. Would you want to be short overnight here?
Not a long term trader myself (I hate overnights as a rule, until I've got more capital that is)
But I was actually looking at wheat around 500 in April, started noticing really unusually dry soil where I live in the UK, plus some other unusual weather patterns across the world (didn't China have a drought themselves)
Seemed a low risk long term bet buying wheat, but as I said, I don't allow myself long term core positions.
it's just the market doing its job to ensure supplies will increase and satisfy demand for next year
thats the beauty of markets...just think if it was some central planner raising official wheat prices by at most 5-10% in response to the drought, next year imagine the shortages you'd get.
price will keep rising until the incentive is great enough to ensure farmers don't shift into other businesses, and hopefully nobody starves as a result of the current shortages
Retest of 1350? Your guess is as good as mine (probably better IMHO). From a fundamental point of view this move seems overdone to me but I'll take what I can get. A string of limit up days would be fantastic.
When a market goes parabolic like this I prefer to start looking for the exit.
Good luck!
