US Wheat Hits 9-Month Low as Farmers Harvest More
May 30th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsWheat sank to its lowest price since August last year as US farmers began harvesting what is expected to be the biggest winter grain crop in a decade, reports Bloomberg:
Production will increase 17 percent from a year earlier to 1.78 billion bushels, the most since 1998, the U.S. Department of Agriculture forecasts. About 4 percent more acres were seeded from September to November, the agency said. Wheat prices have tumbled 45 percent from a record $13.495 a bushel on Feb. 27.
“High prices beget low prices,” said Dan Kuechenmeister, a manager of the commodities department at RBC Dain Rauscher in Minneapolis. “We’ve seen a lot of wheat planted, and we’re finally going to get a decent harvest.”
Prices will rise again, so now is a great time to invest in a livestock ETF, says Ian Davis in The Growth Stock Wire: “Hog farmers are not running charities. When the input costs for hog producers soar, the price of hogs must also rise. By buying hogs, we are piggybacking (excuse the pun) on the uptrend in agriculture and crude oil.
“So when the uptrend finally begins, how should we play it?”
Read on how to profit when this upswing kicks in with this livestock ETF.
“When the gold price rises, jewelry gets more expensive,” says Tom Dyson in DailyWealth. It’s the same way with farm animals. When the corn price rises, livestock must get more expensive. Corn has doubled in the past 18 months, but livestock prices are still in the same range they were six years ago. They will catch up with corn.”
Tom also recommends that his readers invest in a livestock ETF.
“Two trade in London under the symbols CATL.L and HOGS.L,” says Tom. “They track the Dow Jones AIG sub-indexes for live cattle and hogs.”
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