Wheat The Next Big Commodity Trade

Every year there is always one of the commodities markets that makes that huge commodity trade. There were years in which Wheat and all the various grains were the big winner in the commodities markets. The question is, is Wheat lining up to be this years big commodity trade for trend followers? Commodity future traders do not trade their opinions but rather price action. What spurs price action…Price movement.. throughout the world droughts are occurring a regular basis. This reduces the supply of crops such as wheat. Simple math…reduced supply…same demand…increase prices…reduced supply and increased demand ( China, India or whoever else) possibly a massive BIG COMMODITY TRADE. Look at this excerpt from Bloomberg
June 29 (Bloomberg) — Argentina, the worldג€™s fourth largest wheat exporter last year, may withdraw from world markets for the first time in at least a century as drought reduces plantings.

Continued dry weather until September will probably cut the 2009-2010 harvest to as little as 6 million tons, a 28 percent decline from the previous season and equal to the amount consumed by local millers, said Eduardo Anchubidart, an economist at the Buenos Aires Cereals Exchange.

ג€The situation is now getting dangerous,ג€ Anchubidart said in a telephone interview. Argentina has exported wheat since at least 1910, when records began, according to the exchangeג€™s statistics yearbook.

After reading stuff like this…and with all of the money spent on the stimulas plans…isn’t it possible there can be a big move for trend followers and commodity trading advisors?

Andrew Abraham
www.myinvestorsplace.com

Futures and commodity trading involve substantial risk.People can and do lose money trading.

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