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SAT AGRICULTURAL PROGRAMS
All of the agricultural programs currently offered by SAT
use fundamentals to help determine trades to one degree or another. SAT
Agricultural Programs trade primarily in the agricultural futures and
options, but may trade non-agricultural futures and options on occasion.
Factors that affect the supply and demand of a particular commodity in order
to predict future prices are looked at. As an example, some of the
fundamental factors that affect the supply of a commodity (e.g., corn)
include the acreage planted, crop conditions such as drought, flood, and
disease; strikes affecting the planting, harvesting, and distribution of the
commodity; and the previous year's crop carryover. The demand for
commodities such as corn consists of domestic consumption and exports and is
a product of many things, including general world economic conditions, as
well as the cost of corn as a feed in relation to the cost of competing
products such as soybean meal. In addition, historical and seasonal patterns
are reviewed, which may indicate the direction the market may move in the
future.
Decisions whether to trade a particular commodity
contract are also based upon various factors including liquidity,
diversification, and crop potential, both historical and at a given time.
The decision not to trade certain commodities for certain periods, or to
reduce the number of contracts traded in a particular commodity might result
at times in missing a significant profit opportunity which otherwise might
be captured by other strategies
The trading guideline and experience of SAT traders, are
factors upon which decisions concerning the percentage of managed assets to
be used for each commodity traded and the size of the positions taken or
maintained. SAT may also decide to increase or decrease the size of a
futures position (long or short) from time to time. Such decisions require
the exercise of subjective judgment and include consideration of the
volatility of the particular futures market, the pattern of price movement,
open interest, volume of trading, changes in spread relationships between
various contract months and between related commodities, and overall
portfolio balance and risk exposure. No assurance is given, however, that
consideration of any or all of these items will be made with respect to
every trade, or that consideration of any of the above in a particular
situation will lessen the risk of loss.
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Why Invest Now?
In Our opinion
Commodities such as gold and
crude oil are finding fresh favor as large investors flee the
stock market, and some analysts predict even higher prices this
year on expectations of U.S. military action against Iraq. |
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