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.

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

Commodity Traders Asked to Pay Attention to Grain and Exotic Commodity Sectors

Port St. Lucie, FL (PRWEB) December 19, 2006

Commodity traders are being asked to pay special attention to the exotic and grain commodity sectors.

The exotic futures sector and the grain futures sector may lead the next portion of the commodity bull market higher for a multitude of reasons:

•Coffee futures prices recently hit a 10 month high based on the anticipation of a smaller world crop next year. Go to the coffee link on the education page to learn more about coffee futures and options trading.

•Cocoa futures prices recently hit a 5 month high based on the ongoing problems in Ghana and the Ivory Coast where over 50 % of the world cocoa supplies originate. Government turmoil, and swollen root virus (a virus that kills the cocoa trees) are 2 major problems that are currently influencing cocoa futures prices higher. Visit http://www.tkfutures.com/cocoa.htm to learn more about cocoa futures and options trading.

•The recent USDA report estimates that the Florida orange juice crop will be the lowest in 15 years. The Florida orange juice crops were decimated over the last 3 years by hurricanes, citrus canker disease and citrus greening disease. Orange juice futures prices recently hit all time highs. Go to http://www.tkfutures.com/orange_juice.htm to learn more about orange juice futures and options trading.

•The most recent USDA report estimates that corn ending stocks are 935 million bushels (an 11 year low). Corn futures prices have corrected from 10 year highs but increasing ethanol demand and high poultry, cattle and hog feed demand are may limit prices on the downside. Visit http://www.tkfutures.com/corn.htm to learn more about corn futures and options trading.

•Wheat futures prices have recently declined from 10 year price highs but the most recent USDA report estimates that world ending stocks are at 121 million tons. This would be a 21% stocks to usage ratio which is the tightest in 11 years. Demand has outstripped wheat production for 5 of the last 6 years. Go to http://www.tkfutures.com/wheat.htm to learn more about wheat futures and options trading.

•Soybean futures prices have risen by $ 1 a bushel based on bio diesel demand, soybean rust problems and the anticipated smaller planted acreage because of higher corn plantings next year. Contact T & K Futures and Options Inc. to learn more about soybean futures and options trading.

•Any investor pondering grain commodity trading should also consider the El Nino weather pattern predictions for above average temperatures and below average precipitation for the grain belt next spring and summer. Weather may cause more problems to an already precarious grain situation.

•The US dollar is also weakening versus other foreign currencies, which enhances foreign buying power which should also stimulate more demand for US grains and agricultural products.

If you are a commodity trading novice, feel free to contact one of our commodity trading professionals to learn the mechanics of commodity trading.

To learn more about the various future trading and option trading strategies please contact one of our future or option trading professionals to help map out a suitable investment strategy.

Commodity future and option trading is very risky and only risk capital should be used. Go to http://www.tkfutures.com/risk_disclosure.htm to better understand the risks of commodity trading before investing in commodity futures or options. There are no guaranteed good trades.

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©Copyright 1997-

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

Investment Disasters Made by Commodity Future and Commodity Option Investors

Port St. Lucie, FL (PRWEB) August 23, 2006

T & K Futures and Options Inc. believes that most commodity traders make many disastrous trading mistakes in the commodity markets. Many enter the markets without enough capital to withstand losing trades. The fact is with $ 5,000, commodity traders can only get into maybe two or three different markets and maybe afford two or three futures contracts or maybe 6-10 options depending on the market the commodity traders are trading in. If one or two of those markets lose, futures traders have a lot of ground to make up with just one market because all of the risk capital is already invested.

Now if commodity traders invest $ 50,000 and buy the same two or three futures contracts and the same 6-10 options in two or three different markets they will have more risk capital to add to any winners they might have and diversify elsewhere etc. Commodity traders should not invest if they are undercapitalized. Visit http://www.tkfutures.com/margins.htm to see current margin requirements.

T & K Futures and Options Inc. believes another reason why so many commodity futures and commodity options investors lose is because they listen to the various news sources and base their trading on the so called experts. Commodity investors have to understand that news about gold prices being at $ 260/ounce is not a good story. Who cares? But when gold is at $ 700/ounce and a 20 year high, everybody seems to talk about it. Now the “experts” might say, “Gold is going to $ 1,000/ ounce.” The mentality becomes buy it before it goes any higher.

Isn’t the idea to buy low and sell high? Or at the very least buy into the gold bull market on price dips. There is a contrarian indicator called bullish consensus that alludes that commodity investors should sell any market where more than 75% of the small speculators and experts are bullish and should buy when less than 25% of small speculators and experts are bearish. Warren Buffet, the second richest man in the world, said something to the effect, “When everyone is brave, be afraid and when everyone is afraid, be brave.” T & K Futures is tempted to listen to him since he made his money investing in out of favor companies and commodities. Don’t be part of the herd. Make future trading decisions based on solid technical and fundamental analysis. To learn more about technical and fundamental analysis visit http://www.tkfutures.com/research.htm

Another risk factor is the huge bid/ask spreads that can occur in high volatility times or in illiquid markets. Many investors do not understand that this can cause a huge debit in your account the second that they put the trade on. Our company has seen $ 400-500 bid/ask spreads in options during volatile trading times and in illiquid markets on a number of occasions. It is important to trade liquid markets. To see a list of the most liquid future markets visit http://www.tkfutures.com/education.htm Let us explain what the bid/ask spread is. Just like a stock or bond purchase a commodity has a spread. The spread is how the traders or some third party gets paid. In a liquid stock it might be 25 cents a share for instance. So if a stock trader bought 1,000 shares of xyz for $ 5.25 they paid $ 5,250 for a stock that they can only sell for $ 5,000 if they immediately offset that trade. It’s only worth $ 5 but they paid $ 5.25. So in this example the bid/ask would have to go to $ 5.25/$ 5.50 for the stock trader to break even. Now factor in commissions and fees. Imagine now that a futures trader purchases a coffee call for $ 1,000 and it is only worth $ 500. That is a $ 500 bid/ask spread. The investor is down $ 500 the second they buy the option. Always find out the bid/ask spread before entering and exiting a commodity future or commodity option trade. For real time bid/ask information visit http://www.tkfutures.com/contact.htm

The information above is the opinion of T & K Futures and Options Inc. and is for informational purposes only and in no way should it be considered a guarantee of profits. Past performance is not indicative of future results and only risk capital should be used for commodity investing. Commodity future and option trading is risky and commodity traders can lose money.

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©Copyright 1997-

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

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