Hello Farmers, I'm a Day-trader

[Wait4proof]

Hello Farmers, I'm a Day-trader in the United States.
We just had 2 hurricanes and it got me thinking about Gas prices.
And that made me wonder about prices of Commodities in general.

I posted my thoughts and questions on a Trader's Forum:


Then I realized, for me to truly understand, I need to ask Farmers - so I just signed-up here today.
Hello Farmers. Thank-you for everything you do every day.
(My grampa was a 99 acre farmer, so I know it is the hardest work on Earth - he died in his 60's)

So here's my questions:
When you watch the news on TV, do events on the opposite side of the world cause you to say, "Oh boy! That's going to affect my prices." ? ...for example... If you live in the U.S. and there is an outbreak or disaster in China.

Or, do you blame Traders for the prices of Commodities?
Do you ever say, "I wish they would ban Traders from the Market. They always mess-up the prices for stupid things happening in China." ?

Thanks for any insights.
(by the way, I do not trade Commodity Futures or plan to. I'm just curious.)

 

[Deereone]

I bury my head in the sand. My theory is; if there is nothing I can do about it why worry. Shut your gate, throw away your telly and mind your own business. It works for me.

 

[TripleSix]

In the fabled words of those Legends called The Wurzels.

Don't tell I, tell 'E, that's my philosophy
When folks do swear, and tear their hair,
Don't tell I, tell 'E

 

[Pasty]

Anyone dealing in actual commodities on a large scale will probably be using the markets to hedge their prices anyway I would guess. Even small farmers sell forward etc.

 

[buffalo_soldier]

I did ring my feed chap when the hurricanes were on the news to see if forward buying some more was prudent.

His opinion was that it shouldnt have much of an effect on supply.
Prices are more prone here due to currency movements and traders deciding to drop £250m or so into wheat futures for example.

 

[Yale]

We've bought our grain for winter as in the back of my mind that North Korean guy is stupid enough to send a missile off with a live nuclear warhead.

That may affect world markets for commodities.

 

[PostHarvest]

Commodity traders and farmers operate in entirely different worlds. Some years ago, I worked for a small grain trading company based in Switzerland. The partners had been offered some land in Russia at a peppercorn rent and thought they would make their fortunes by farming it. It didn't take them long to realise that they could make more profit by trading a couple of ship-loads of grain with a few clicks of a computer mouse than they could make in 5 years of trying to operate their own farm. They knew the rates of return didn't stack up, but tried it anyway and lost their shirts.

 

[Pasty]

Commodity traders and farmers operate in entirely different worlds. Some years ago, I worked for a small grain trading company based in Switzerland. The partners had been offered some land in Russia at a peppercorn rent and thought they would make their fortunes by farming it. It didn't take them long to realise that they could make more profit by trading a couple of ship-loads of grain with a few clicks of a computer mouse than they could make in 5 years of trying to operate their own farm. They knew the rates of return didn't stack up, but tried it anyway and lost their shirts.

That's always been the case but it's a soul destroying job and not for everyone. Trading I mean. Fact is when you make money our of something like 9/11, even if you didn't intend to, it really makes you think about what you are doing and why.

 

[Gong Farmer]

Hello Farmers, I'm a Day-trader

Got any Thursdays in stock?

 

[davieh3350]

Got any Thursdays in stock?

Difficult things to trade I'd imagine. Yesterday for example, if I'd known it was going to be as poor as it was (soaked to the skin 3 times) I'd have sold first thing, but the problem was it started well. Hindsight is a wonderful thing... Where as today I wasn't looking forward to getting the bullocks back in to the yard, so I'd have probably cashed today in and possibly bought a couple of Mondays (no one likes Mondays so you'd get them cheap) but it went ok..

 

[Gormers]

Difficult things to trade I'd imagine. Yesterday for example, if I'd known it was going to be as poor as it was (soaked to the skin 3 times) I'd have sold first thing, but the problem was it started well. Hindsight is a wonderful thing... Where as today I wasn't looking forward to getting the bullocks back in to the yard, so I'd have probably cashed today in and possibly bought a couple of Mondays (no one likes Mondays so you'd get them cheap) but it went ok..

That's made me grin.....nice one @davieh3350

 

[Pasty]

I'm long Thursdays. Short Mondays.

 

[cosmiccrofter]

Bet the wife doesn't like Mondays

 

[Storeman]

Bet the wife doesn't like Mondays

The Boomtown Rats didn't either

 

[bovrill]

I'm long Thursdays. Short Mondays.

Worn yourself to a stub over the weekend?

 

[Wait4proof]

Thanks Farmers,
I see that many of you are mindful of how world events affect you, along with how Day-traders affect you too.

We've bought our grain for winter as in the back of my mind that North Korean guy is stupid enough to send a missile

Prices are more prone here due to currency movements and traders deciding to drop £250m or so into wheat futures for example.

And I came to the same conclusion:

Fact is when you make money our of something like 9/11, even if you didn't intend to, it really makes you think about what you are doing and why.

Like I said to begin with, I know Farmers have the hardest job on Earth.
And after the past 2 days reading about this subject - I now think Futures Trading is Despicable.
Economics 101 = Supply and Demand <-- except for when Wall Street sees a way to exploit the system.

It has been an eye-opening education.
Thanks again.

 

[Yale]

I'm long Thursdays. Short Mondays.

Thirsty Thursday...

 

[The Agrarian]

I reckon futures trading may well increase the speed with which the market reacts to news, and perhaps the amplitude of the reaction too, but whether it has much affect on the medium and long term moves of the market I'd be much less sure about. I don't really have a problem with it. We have experienced incredibly large swings in commodity prices in the dairy sector over the last ten years, and futures trading is only a tiny part of those markets.

I participate in stock market futures. Futures trading puts lots of little squiggles on the charts, but the inflow/outflow of money is what really determines where those markets go over the medium and longer term.

 

[phillipe]

Managed to pick up a Friday,been delivered tommorow ,thank feck

 

[ollie989898]

Futures are a way for buyers and sellers to function, even when they want the polar opposites on price.