If I wanted to invest my money in crops (corn), how do i do so.?

Answer 1

You can invest in corn futures on the CBT. Dec 06 corn is trading at 3.51 a bushel 5000 bushel increments. Dec 07 is trading at 3.42. You can put up t-bills as colateral and receive the interest in the mean time.

You can invest in about 320 acres of Indiana, Illinois, or Iowa and go shares with a farmer having the equipment. Smaller acreage would probably not be worth the investment.

You can invest in ADM, a large corn processor. Not a direct investment in corn but an indirect investment.

You can also invest in futures options. Less capital buy more risk.

Answer 2

I think the easiest way to invest in corn is to buy the following ETF: DBC. You can but itjust like any stock, through and online broker like Scottrade. It tracks a basket of commodities including: oil, natural gas, aluminum, gold, corn and wheat.
ADM and BG are 2 stocks that you might want to look at if you think corn is a good investment.

If you are looking for investment ideas I would suggest http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

Answer 3

Commodities trading can be a risky venture; but if you know this market well, go for it. Contact any reputable brokerage firm that has commodity trading (all the major brokerages do). You'll be able to sift through plenty of reports and information as a client... if you want to trade completely on your own, I'm sure you can get a discount on your transactions.

Answer 4

the easiest way to invest in corn is like the previous guy said, is to buy futures contracts at the chicago board of trade. they are not for everybody though. you will need to inquire several futures sources just to get your feet wet. all-in-all, with margin, you can get a futures contract for about 500 dollars.

Answer 5

I would tend to agree with Barry...
let me add my two cents to his picks...
GRG is another ETF that contains a basket of commodities

ADM , BG are very good....
ANDE and TRN are also very solid...
but trade more in line with ethanol news...
MON and SYT are seed plays

if you play the commodities/options/futures ...just be warned

High reward has high risk....