Thursday, March 13, 2014

Ag Commodity Charts: The Astounding Increases in Breakfast Items

Our only public long was corn, $4.275 to $5.00, up 16.96%.
I didn't make a big deal of it in our March 7 "Corn hits $5, wheat soars on Crimea, dryness fears" post:
This is pleasing.
And I meant just that. The numbers behind the "Better put him on hubris watch, doctor" trade:
5000 bushels per contract x $0.725/2,363 initial margin per contract is a 153% profit over the course of 100 days.
So yeah, pleasing.
But that's nothing, basically it allows you to have a lot of losers and still stay solvent.

For futures trades that made real money, here's Kimble Charting Solutions:

http://blog.kimblechartingsolutions.com/wp-content/uploads/2014/03/foodpricesmoovinghigherthisyearmar13.jpg

It looks like breakfast is going to get a lot more expensive.