Laeken International Anticipates Long Term Bull Market for Grains Commodity Futures
The Laeken International Chief Executive Officer, Mr. Sebastian Pacey, A 20-year veteran commodity trader of grains futures expects the use of fuel particularly ethanol and biodiesel to drive grains futures to impressive high records for the next few months or even years.
- (1888PressRelease) July 07, 2011 - Global warming, US government financial support and high costs of fuels have guided to a considerable increase in biodiesel and ethanol power plants as well as the utilization of commodities such as soybeans and corn. The mounting demands for fuels such as ethanol and biodiesel are consuming immense sources of soybeans and corn for feeding poultry, cattle, and pork. Livestock sources such as cows, chicken and pigs still have to be feed so what will happen to grains futures prices if the demands for green energies continue to soar high?
Some trading analysts, including Mr. Sebastian Pacey, are confident that if the price of basic energies stays above the $45, the productivity of biodiesel and ethanol fuel will continue to promote the making of more power plants to be constructed. This is for the reason that more biodiesel and ethanol fuels are needed to boost the supply for corn and soybeans.
What will happen if a bad weather pattern causes a hot and dry summer in the grains futures and the US dollar will continue to weaken? Definitely, the hot and dry weather will weaken the corn and soybeans harvests while a deteriorating US dollar will make the corn and soybeans cheap to foreign consumers thus it may results to increase in demands. The grains futures prices might as well climb a new high record this summer.
The farmer's decision on what to plant might also affect the prices of soybeans and corn futures in the next few months. Should farmer plant soybeans instead of corn or prefer corn rather than soybeans? Both ethanol and biodiesel fuel demands are tremendously increasing and the existing soybean and corn futures prices do not even seem to be thwarting existing demand or production levels. At present, an estimated 200 new power plants of biodiesel and ethanol has been built or under construction to support and maintain the demands for corn and soybeans futures.
How could a regular market participant speculate prices of soybean and corn futures? Sebastian Pacey shares two simple ways of investing in corn and soybeans futures. He stressed: "There are commodity futures and commodity options contracts. These two are considered as recommended avenues for commodity futures but must be entirely assessed before investing in either. Both can be very risky thus requires only risk capital to be used when investing in either because there is a significant risk of loss in investing in corn and soybeans futures and options."