WOULD YOU RISK $1,200 TO MAKE $12,000?

Then read below.....

    11/12/06:  Based on the most recent USDA data, global supplies of wheat are projected to be at 34 years lows by the middle of 2007. At the same time the global consumption of wheat has increased. As in six of the last seven years the world has consumed more than it produced. With growing middle class in China and India we believed world wheat consumption will continue to grow for the next several years.

    Wheat stocks will now fall to dangerous levels due to shortage in South America and Australia in particular which may lose 80% of its wheat crop. European and Malaysian imports have failed to cover much of their winter/spring wheat needs as the anticipated supplies from Australia, those supplies will not materialize. In the next 60 days we believe that the world wheat importers will be forced to buy their early 2007 wheat in the US wheat market. However US wheat stocks are at multi-decade lows.

    A bidding war for limited US wheat supplies maybe about to begin and we see no reason why wheat prices should not exceed all-time high prices of $7.50 per bushel or higher as soon as Q1 2007. Today prices are near $5.00 per bushel so one CBT 5000 bu wheat contract would go up over $12,000!
 

    THE TRADE:  We are buying March CBT Wheat futures at $4.86 and risking to $4.60. We are buying March KC Wheat futures at $5.22/bu and risking to $4.88.

    NEXT TRADE:  The Gold bull market returns...

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