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Non-Tech : Farming -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (519)	3/9/2008 10:54:48 AM
From: Tommaso	Read Replies (1) \| Respond to of 4454

There is a front-page article in today's Sunday NY Times about the world bull market in grain (or the world shortage of grain), especially wheat. It is a must-read, if I may say so. There's also another front-page article on the credit mess. These are on the front of the entire paper, not just the business section. It appears that we were more than a year ahead of the NY Times. Overnight, it did occur to me that DBA could indeed go to a premium or a discount from its underlying value, just as a closed-end fund can do. But I can't imagine a 10% gap in either direction persisting as it often does in closed-end stock funds; any smart futures trader could arbitrage that because one always knows almost exactly what is in DBA. But I still would not call it "momentum" except to the extent that for some traders the grains themselves have a momentum component. I never had PCRDX (my version of the Pimco fund) in anything but IRAs, so happily I was unaware of the tax angles. I am prepared to wait until COW comes home; I wish I had seen the possibilties of MOO sooner.