Commodity Speculation?

[smalls]

Has anyone here ever traded porkbellies, OJ, corn or crude?

I was approached yesterday to "invest" in someone's day trading method. He didn't have a great explanation why needed outside investment if his method was SO successful.

I have hedged positions when I was actively involved in farming, but I've never straight out speculated on the market. With all that you guys are involved in, I'd be surprised if I didn't find SOMEONE here who's got market positions somewhere in the exchanges. It does interest me as a long term investment, with both (significantly) higher risks and rewards associated with it as opposed to other investments like RE.

Factoid- If you'd have bought one RBOB (Gas) contract (42,000 gallons) this time last January and sold it on June 1, you'd have profited around $50,000.

 

[Bambistew]

I friend of mine used to dabble in it. He pretty much quit after nearly having to take delivery of some ungodly amount of eggs. They were loaded on the truck and he luckily found a buyer at the final moment.

 

[JohnSWA]

commoditees are not long term positions and very speculative. Be VERY careful on commoditees and do some serious homework! Be very careful of FRIENDS offering investments.

 

[MarvB]

Do it every day at work....but it's not MY money...

 

[smalls]

Do it every day at work....but it's not MY money...

Are you speculating or are you hedging actual product?



With GoldmanSachs predicting the Fed will cut interest rates to 2.5% by the third quarter, have any of you shored up your position on gold? Do you think we'll blow by the $1000/oz barrier?

 

[MarvB]

Are you speculating or are you hedging actual product?

Both actually....in my world it comes down to hedging (sometimes collaring) via a gas vs electricity arb most of the time but also direct specualtion of NYMEX contract purchases for power, gas. Everything is "tradable" these days....gas, electricity, green tags, NoX, SO2, etc....the whole "carbon footprint" thing is a traders wet dream in all the options it is bringing with it.

But again, I work for a public util so my goal is to lessen upward pressure against rates...if I shave a 1/100 of a % or a 1/1000th my reward is keeping my job.

 

[noharleyyet]

Both actually....in my world it comes down to hedging (sometimes collaring) via a gas vs electricity arb most of the time but also direct specualtion of NYMEX contract purchases for power, gas. Everything is "tradable" these days....gas, electricity, green tags, NoX, SO2, etc....the whole "carbon footprint" thing is a traders wet dream in all the options it is bringing with it.

But again, I work for a public util so my goal is to lessen upward pressure against rates...if I shave a 1/100 of a % or a 1/1000th my reward is keeping my job.

smalls, Marv is one damn sharp geezer, ain't he? He sure nuff raises the IQ bar on our fantasy hunt team.