soft commodities

player · March 26th, 2006, 10:26 pm

If I'm a private investor how can I invest in "soft" commodities e.g foodstuff grain, wheat orange juice,etc???

CB · March 26th, 2006, 10:46 pm

QuoteOriginally posted by: playerIf I'm a private investor how can I invest in "soft" commodities e.g foodstuff grain, wheat orange juice,etc???Why are you interested in "soft"?

player · March 26th, 2006, 10:59 pm

A hunch..Any ideas??

exotiq · March 27th, 2006, 12:28 am

If by "private investor" you mean an individual who is a qualified purchaser / accredited investor, several banks will be able to write you an option / warrant (zero strike if you like) on the DJAIG softs or the GSCI Ags index, or they issue you a note on a private placement basis.Alternately, you can just go out and buy the futures yourself...

commoditytrader · March 27th, 2006, 3:04 am

I trade soft commo along with other stuffs.As an individual investor u can invest thru ubs fund that just launched an biofuel index which basically includes all main feedstox for biofuel - from sugar to corn to soyoil...Otherwise most online brokers offer vanilla options on all softs that are traded in the us/uk.

player · March 27th, 2006, 9:48 am

By private investor I mean the man on the street...Who would be a good broker to go to regarding the futures trading on these commodities?? I preferring something sterling based

figaro · March 27th, 2006, 1:43 pm

I think most of the cfd and spread betting firms offer some softs for the "man on the street". Which street though?

Surfer · March 27th, 2006, 2:50 pm

Open a personal account with MAN Futures...they cover every soft commodity on planet earth (from azuki beans to wool) and you can easily open an acct. there with very little cash.

CB · March 27th, 2006, 2:54 pm

Futures should be used as a substitue for the spot market.because 1. it takes away the physical contraints of spot trading 2. provides the flexibility of short and long positions

commoditytrader · March 28th, 2006, 1:32 am

Futures not always mirror the real price of commodities.Reasons : wrong specs, bad delivery, not enough liquidityExamples : ethanol market in chicago, indian/chinese soft markets

KackToodles · March 28th, 2006, 5:45 am

QuoteOriginally posted by: playerIf I'm a private investor how can I invest in "soft" commodities e.g foodstuff grain, wheat orange juice,etc???You can simply buy shares of companies that produce this stuff, like pepsico or coke (one of them owns tropicana)

EnergyQuant · March 28th, 2006, 7:34 am

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: playerIf I'm a private investor how can I invest in "soft" commodities e.g foodstuff grain, wheat orange juice,etc???You can simply buy shares of companies that produce this stuff, like pepsico or coke (one of them owns tropicana)Think before you type, KackToodles!

player · March 28th, 2006, 9:05 am

Just out of interest..when I buy futures will that only be applicable for short term positions...I'm looking to hold for between 3-6 months...

commoditytrader · March 28th, 2006, 9:13 am

If I buy coke wud I be long sugar? Its rather the other way round.One of the oddest thing I read on wilmott.Ref investment horizon it all depends on your view on how the mkt will behave from a carry/inverted standpoint : you can buy short maturity futures and roll them or buy more deferred contracts.