Risk on… sort of

It’s a decidedly risk on day in the markets. While initially feared to be a rally killer, the Euro Summit has bolstered investor confidence in the Eurozone’s ability to pull through this rough patch with minimal damage (though analysts don’t quite agree), and as a result, we’re seeing financials, metals, and most currencies bouncing in joy. Over the past couple of months, most of this kind of risk on behavior winds up being embraced in every market, but today, grains and softs are marching to the beat of their own drum.

Source: Finviz

Now, we are certainly not fundamental traders, but, in many ways, this behavior makes more sense than the risk on trading occurring elsewhere. The USDA report today indicated lower demand for most grains for livestock feed and higher supplies for cotton and orange crops. Cocoa, in the meantime, is extending its longest slump in 50 years on a continued supply glut. These things should, theoretically, cause prices to drop.

Except, as we’ve written about before, these kinds of reports are far from reliable. Not only are they based on estimates and frequently revised, but they also don’t make a whole lot of sense in the big picture. We’ll know for sure come January, when the USDA releases actuals for the markets in question, but in the meantime, someone else seems to think they know something. Rumor has it that one individual or firm purchased 10,000 December 2012 $7.00 Corn calls for $.22-.25 each. In layman’s terms- someone is betting around $11 million on Corn prices soaring by mid-November of 2012.

Do they know something the USDA doesn’t? Guess we’ll find out…

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Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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