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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (11416)	4/6/2004 2:10:35 PM
From: ild	Respond to of 110194

This speculation will end when people start taking out second mortgages in order to ADD to their holdings of oil futures. NOTE: Does Saudi Arabia want Shrub out? If it does then they will do what they can do -- hold oil prices high and high and high. They need money for French made women's lingerie and French don't accept greenbacks.

To: Jim Willie CB who wrote (11416)	4/6/2004 2:16:18 PM
From: DOUG H	Respond to of 110194

I'd suspect there is spec and fear as a driving force behind many of the prices spikes, afterall, futures are just that, bets on the future. On grains it's still to early in the season to know just what market prices will be but I do know this, most if not all producers I'm hooked into say when present inventories (produced with inputs purchased under 6 mo to year ago delivery contracts) expire, new pricing will kick in. I know a guy who has been fulfilling contracts @ $1.45 lb who sometimes has to buy on the open market (today's prices)for $2.35 lb to fulfill his volume obligations. 1 month ago we concluded a contract that locks in 1/3 our COG for a price that is now 10% better than market. 99% of the people I help contract for have no idea what a trainwreck they avoided.