Originally Posted by frank
I was talking to a person who deals in animal feed products. He said If I wanted to make some money to buy corn futures. Does anyone on this board do this? I've heard it very risky and there is a lot to know. the dealer was saying because of the drought in the midwest corn will skyrocket. just curious.
Any news that's widely known has already been factored into the prices. News that is not widely known, like a dealer needing to unload his overweight positions, will be used to the advantage of those that know, that is, the dealer.
Oh, and he didn't tell you the other side of the coin... For the new crop, the USDA lowered their projected feed use by 650 million bushels, lowered ethanol use by 100 million and lowered export projections by 300 million bushels. So demand is off as well...