Thread: World Only One Crop Failure Away From Grain Shortage

World Only One Crop Failure Away From Grain Shortage
Commodities / Agricultural Commodities
Jun 10, 2008 - 10:14 PM

By: Ned_W_Schmidt


Investors are still adapting to the world of investing in commodities. In the world of paper equities, news is often important. A new phone is indeed actionable information that markets should discount. Investors have become accustomed to trading stocks based on such bits of news. However, they have not yet learned to discern news noise from real news on commodities. Agri-Foods have a seasonality to both availability and prices. That seasonality arises because of the planting and harvesting cycle. In between, comes the weather which often makes difficult the forecasting of supply.

Most weather news is news noise rather than real news. Weather “newsâ€

Well they're loosing here big time with all the flooding in the mid-west......tomatoe growers are loosing till they finally track down the source of the last outbreak. There was a guy on the news talking about gas but what he said is true. We are running on the max.....there's no wiggle room anymore, no safety net......one war, one bad thing from weather and there's no cushion. No protection at all. People are 1 paycheck from destruction, everyone is stretched to the max to where any alteration tips the scale to destruction.