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Robert W Cummings wrote:
> Not even true
> The Government did away with pic but they still have eec stocks and always
> will for defense and other reasons.
Not to nitpick, but EEC usually means European Economic Community. I
assume you are referring to CCC (Commodity Credit Corp) stocks. On the
current corn S&D report, CCC stocks are projected at Zero for the 97/98
crop year and they are not even a line item on the 98/99 crop year.
There still is a LDP program and a short term marketing loan. However,
the big program which is now gone was the corn program, where the USDA
set a limit of what percentage of your corn acres could be planted.
I'm not aware of there ever being any defense stockpiles.
> Also the set aside program is still there just not an incentive anymore for
> the farmer.
It's effectively gone, which means there is no government contol over
planted acres.
> You will see Clinton continue to give wheat away and the
> government is very much in farming.
Yeah that helped. Customers who were going to buy wheat cancelled the
orders to get free wheat. Took a quick dime off the market.
> Look at the cotton 1-2-3 step program just pasted then you'll see.
Not familiar with it. Plus, cotton has nothing to do with Corn.
> Kevin I already took positions in corn, oats, and beans, past tense. So now
> you can watch me be wrong but until then just watch me most everybody does
> everytime I do this as they did in 94. Yes it is a very nice story this
> time you watch next time maybe you can do it to.
>
> Robert.
Hey, I hope it works for you. Over time you will be correct. My main
point was that buying the deffereds you could get left in the cold on
any price rise which reduces the carrying charge. You've got a potential
for a dime advantage your way or a dollar or more if you own the nearby.
You asked the list for input on your trade idea, so I pointed out a few
things. You also mentioned that you bought futures and sold calls, so I
have another suggestion. Since you are selling synthetic puts, cut your
transaction costs in half and simply sell puts outright.
Kevin
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