Commodity Funds Continue To Struggle

Ted

FYI: The price of a bushel of corn for May delivery tumbled during the last day of the quarter by almost 5 percent to $3.756. The move was caused by the corn supply in the Unites States coming in much higher than expected, even after the government pegged its inventory in June at its highest level in 28 years.

The 7.75 billion bushels' stockpile, as of March 1, is 11 percent higher than a year ago, according to the U.S. Department of Agriculture. The reading outpaced economists' estimates of an 8.6 percent increase and is the highest on record at this date since 1987.
Regards,
Ted
http://www.marketwatch.com/story/commodity-funds-continue-to-struggle-2015-04-01-12463348/print

clacy

Commodities are in a huge bear market. IMO they are purely for trading/hedging, and if you B&H commodities you're asking for trouble.

Junkster

I have never bought into this thinking about using commodities as a diversifier etc. Terrible long term record. It never ceases to amaze me how little some commodities have risen in price since I was a commodity broker in the early 70s. That was like eons ago. Just as some investors are obsessed with a 2008 redux and are invested accordingly, some have been obsessed since the 1980s about a 70s style inflation redux and have invested accordingly.

TSP_Transfer

@ Ted said September 2014 in Fund Discussions FYI: I own a 1,200 acre farm west of Dubuque, Ia. It has been in my family for close to a hundreds years on my father's side. The report I'm getting from the tenant who farm it for me is about 188 bushels of corn per acre. Years ago, in a good year, I'd yield roughly 80-100 bushels of corn per acre. Better seed chemicals, and machinery have made the difference.
He wants to renegotiate the lease terms ,Ted !!
http://www.mutualfundobserver.com/discuss/discussion/comment/46722/#Comment_46722

Ted

@TSP_Transfer: Yes, last fall's harvest was a bumper crop.
Regards,
Ted

TSP_Transfer

@Ted, You missed my tongue in cheek comment.
He wants to renegotiate the lease terms ,Ted !!


More Ag/Farm
Jf Drought worsens in West..farmers may face restrictions

California governor orders mandatory water restrictions
BY FENIT NIRAPPIL ASSOCIATED PRESS
04/01/2015 5:32 PM 04/01/2015 5:32 PM


Wednesday's order has fewer provisions addressing the state's biggest user of water: agriculture.

There is no water reduction target for farmers, who have let thousands of acres go fallow as the state and federal government slashed water deliveries from reservoirs. Instead, the order requires many agricultural water suppliers to submit detailed drought management plans that include how much water they have and what they're doing to scale back.

After the previous drought, state officials acknowledge that some suppliers did not submit similar required plans in 2009. Mark Cowin, director of the Department of Water Resources, said the state will provide money to make sure the plans are written and may penalize those who do not comply.

The state is not aiming to go after water-guzzling crops such as almonds and rice the same way Brown has condemned lawns.

"We're not at the point yet where we are going to declare the irrigation of any particular crop 'waste and unreasonable use,'" Cowin said.

Read more here: http://www.miamiherald.com/news/nation-world/article17079074.html#storylink=cpy

Warning: This is a Seeking Alpha Article
Don't Waste Water, But Rather Invest In It
by David Krejca, AlphaReturns.IO Mar. 30, 2015
"On the occasion of the World Water Day, the United Nations released its annual World Water Development Report. This year titled "Water for a Sustainable World," the report suggests that the world water supply will fall short by at least 40 percent within the next 15 years if world leaders do not rethink their water policies..Unlike oil, natural gas, or any other commodity, investors can't use futures contracts to directly bet on water prices. However, there are two alternatives for how to capitalize on the increasing scarcity of fresh and potable water. The first is to invest in utilities or companies that desalinate, recycle, conserve, purify and distribute clean water, as well as those that make equipment and deliver new technologies to the water industry. The second is to purchase securities of some mutual fund or one of the four water E T Fs
All the E T Fs are closely correlated to each other and are slightly behind the S&P 500 index. Nevertheless, several differences can be found. The Guggenheim S&P Global Water Index E T F (CGW) and the PowerShares Global Water Portfolio E T F (PIO) are internationally diversified, while the First Trust ISE Water Index E T F (FIW) and the PowerShares Water Resources Portfolio E T F (PHO) are solely focused on the U.S. market. The following table provides a good summary of the essential differences among them..
http://seekingalpha.com/article/3038716-dont-waste-water-but-rather-invest-in-it
Or AWTAX
CFWAX

Ted

@TSP_Transfer: This what he'll get !!!
Regards,
Ted

hank

With commodities, a little bit goes a long way. And Junkster is mostly correct. But if you get the timing right, you can make a ton with commodities - as with any other investment.

What's really at play now Is the value of the dollar vs. other currencies. It's King of the Hill at present. Today, Dollar fell and commodities and gold jumped. The gold funds I track were both up over 3%.