Grains Oilseeds

[amarksp]

DBA comments and COW US ticker

Does COW also trade in US or just on Canadian side? Really does not matter much, trades cost me $10.95 for Canadian and $9.95 for US... but let me know if I can save a buck...

FWIW, sold about 20% of my DBA today to cover my margin from buying gold stocks the last 10 days. Bought large positions in MFN under US$10 and under $11 and EPM all under the last PP price of C$1.28 including some at US$1.17. Also bought AGI, GRS and MRB.

So why the sale of my beloved DBA...? Well DBA very rarely sells at such a large premium to NAV as it has the past 2 days. See link:
http://www.dbfunds.db.com/dba/weights.aspx

I believe the current DBA premium to NAV is combination of:
1) End of year window dressing with funds buying DBA to list on their year end holdings
2) Lack of arbitrage acitivity during slow holiday trading. DBA usually trades just a few pennies/nickels up (or down) from its NAV. Believe when you see those large 20,000 to 50,000 share blocks trading in DBA this is arbitrage from someone who owns these wheat/corn/soy/sugar commodity contracts and offsetting with DBA purchase or sell for a profit. The arbitrage is the reason DBA generally trades so close to its NAV, is my belief. But these last few days, there is a much larger DBA premium than normal.

Thus, I sold a bit of DBA today. Hoping to buy back cheaper once my gold stocks go to da moon... Also, with DBA one does not get LT capgains from the K-1, this is most all treated as commodity trading and taxed as ordinary income so not viable to hold for LT CapGains is my understanding. Hope I do not have DBA sellers remorse caused by DBA outperforming my gold stocks...