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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (33818)	11/22/2003 10:22:02 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 36161

tippet, If you are in a business where you sell your product in the commodity market, you can sell today or sell in the future if the price is higher. A commodity producer is interested in making as much a profit as possible with the least risk. This group of producers have the commodity in storage and willing to wait for payment in the future if the profit margin is right. Commodity producers are interested in cash for costs associated with producing the commodity and replacing reserves or expanding the source of reserves. Most companies that buy these commodities from the producer go home flat each evening. This group of companies are in the business of making a profit not speculating.