T & K Futures and Options Says It’s Time to Invest in the Commodity Sector










Port St. Lucie, FL (PRWEB) August 25, 2010

Many major central banks around the world have been printing money since the 2008 subprime crisis froze the global banking system. This massive amount of newly printed money is seeping out into the financial system and will likely cause a huge jump in the inflation rates around the world which can push commodity futures prices to new highs.

Many commodities are already showing signs of inflation around the world. Numerous commodities have already made multi-year highs over the very recent past. Sugar futures prices hit a 30 year high recently as the world went from a supply surplus to a deficit in the period of just two years. Visit http://www.tkfutures.com/sugar.htm to learn more about sugar futures and options trading.

Other commodities in the softs sector also hit multi-year highs. Cocoa futures prices hit 30 year highs as bad weather in the Ivory Coast hurt the world supply. Cotton futures prices just hit 2 year price highs because hot and dry weather in the U.S. Delta region is expected to hurt yields. Orange juice futures prices hit 2 year price highs earlier this year. Coffee futures prices recently hit 12 year highs as bad weather hurt the yields of last year’s coffee harvest in Brazil. Visit http://www.tkfutures.com/coffee.htm to learn more about coffee futures and options trading.

The grain sector also saw wheat and corn futures prices run higher. Wheat futures prices recently hit 2 year highs as the drought in Russia and excess moisture in Canada teamed up to potentially hurt wheat yields. Corn futures prices followed wheat prices higher because corn is a substitute for feed wheat for feeding livestock. Visit http://www.tkfutures.com/wheat.htm to learn more about wheat futures and options trading.

The precious metals sector saw gold futures prices hit all time highs as investors flee many markets in search of a potentially safe haven against inflation and economic turmoil. Gold is also considered a hedge against currency risk as many currencies have been devalued this year. Visit http://www.tkfutures.com/gold.htm to learn more about gold futures and options trading.

T & K Futures and Options, Inc. believes that once all of the newly printed currency is lent out to businesses and consumers around the world there will be a massive spike of inflation. This inflation rate will be very hard for central bankers to battle because most of these governments purchased toxic assets to save the banking system and need to keep interest rates low if they are to make money on those investments. Central banks historically battle inflation by raising interest rates.

The author of this article is a 16 year veteran of the futures and options markets and the President of T & K Futures and Options, Inc. Futures, options and foreign exchange investing carries substantial risk of loss and only risk capital should be used for this type of investment.

###







Attachments

















Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.







Tags: , , , , , , ,

Tagged with:

Filed under: options basics

Like this post? Subscribe to my RSS feed and get loads more!