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Scaletrade@xxxxxxx wrote:
".... Or is it just that crude has
already discounted this, and the other commodities have not. Just sign me
Confused,
Larry Brown (no relation to any other Browns on the list!) LOL!!
Larry,
NW: I would guess that your last point, copied above, is correct. There has been
tremedous political presssure for anyone involved with energy, i.e oil companies
and electric utilities, to hedge the risk
of any supply disruption for Y2K. I doubt that this was the case for the grain or
cotton dealers. . I believe this Y2K pressure on the energy industry artificially
drove up the price of crude oil Please note that Heating Oil and Natural Gas
are not at prices that are commensurate with Crude Oil over $25. Of course, I
have a position and therefore I am biased. Next week should be interesting.
Guessingly,
Norman
> In a message dated 12/30/1999 6:57:17 PM EST, nwinski@xxxxxxxxxxxxxxx writes:
>
> > I have the spread on: Long Soybeans, Cotton, & Sugar,
> > Short Crude Oil.
>
> Norman, Tom, et al,
>
> Nice to see some real commodity talk, but I have a question. I can
> understand why crude and its products will come down if y2k is a non-event,
> but I do not understand why this would make the edible commodities rise.
> Personally I hope they do...I have been long cotton and the grains for some
> time, based on the fact that they are relatively cheap historically, and I
> believe in the law of supply and demand (eventually). But it seems to me
> that y2k problems would be more apt to rapidly raise the price of cotton and
> the grains, than would y2k as a nonevent. In other words, if y2k causes the
> foods and fibers to rise, because of supply disruptions for example, then it
> seems to me that crude should also rise more. Or is it just that crude has
> already discounted this, and the other commodities have not. Just sign me
>
> Confused,
>
> Larry Brown (no relation to any other Browns on the list!)
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