Broadcasting live to New York, Bloomberg eleventh wo to Washington, d C, Bloomberg to Boston, BLUEMBERG twelve hundreds to San Francisco, Bloomberg to the countries is exam General one nine and around the globe the Bloomberg Radio Plus app and Bloomberg got gone. This is taking stock, coming up on taking stock investment opportunities in corn, in soybeans, in bushels of wheat.
We're gonna be speaking with Sal GILBERTI. He is the president, chief investment officer, and co founder of two Cream Trading. We'll get a look at investing in commodities right now. Let's get a look at news from Charlie Pellett in the Bloomberg newsroom. And I thank you very much, Pim Fox.
The US Senate has passed the thirty seven point five billion dollar Energy and Water Spending bill that will provide funds for a private sector nuclear waste storage program, eight extensions of nuclear plant licenses, some finance research on wind energy. Charter Communications has one final regulatory approval to buy Time Warner Cable and become the second largest US cable providers.
California authorities sign off on the merger Burlington Northern Santa Faces train speeds in the first quarter got back to two thousand thirteen levels. People familiar with familiar with the matter of say Germany's buyer is exploring a potential bid for US competitor Monceto, in a deal that would create the world's largest supplier of seeds and farm chemicals. Mancetto has a market value of about forty billion dollars. Buyers valued that not he's six billion. Diego Eduardo Ferro is
co chief investment officer at Greylaw Capital Management. He says he's hoping antitrust concerns have been addressed if this deal happens. You know, it's interesting when you see so much money um deployed to these type of transactions before really doing the appropriate you needed. Just in terms of what what is likely to happen, I think the most obscene case has been recently Hollywood having to pay three four billion
dollars for a film merger. Right now, we've got the Dow Jones Industrial Average advancing a thirty three points, up two tenths of one percent, the SMP hired by two points of point one percent. NASDAK little change down sixteen points to drop there of four tenths of one percent. More trouble in retail today Calls down nine point six
percent after posting week results. Gold down to fifty the ounce to twelve seventy three, a drop there of two tenths of one percent, Crewed up seven tenths of one percent, forty six fifty seven apare home and now at to thirty two on Wall Street. Let's take a look at other news from around the world. Thank you Charlie from
the Bloomberg News Room. My Rami in a censio. This news update is brought to you by benzel Bush Motor Car in Anglewood, New Jersey, offering a commitment to service, luxury and value with total transparency from America's premier automotive dealership. To find the way you drop, I've at benzel Bush dot com. After meeting with Republican presumptive nominee Donald Trump this morning, how Speaker Paul Ryan says he is quote totally committed to working together. Look, it's no secret that
Donald Trump and I have had our differences. We talked about those differences today. That's common knowledge. Um. The question is what is it that we need to do to unify the Republican Party. Ryan has said he is not ready to endorse Trump for president. Meanwhile, Trump is narrowing down his choices of a possible running mate. Bloomberg's Michael Barr fills us in. Donald Trump is thinking about selecting former House Speaker Newt Ginbridge as his vice presidential running mate.
That's according to several people familiar with the situation. The presumptive Republican presidential nominee has been asking his inner circle on Gingridge as a potential pick. Trump has said he has narrowed his vice presidential list to five or six candidates. Some of the names on the list include Oklahoma Governor Mary Fallon and former Arizona the governor Jan Brewer, Michael Barr,
Bloomberg Radio. Five years in prison for Dean Skelos, the once powerful New York politician convicted of using his position as Senate majority leader to pressure companies to provide hundreds of thousands of dollars for his son, learned his fate earlier today. His son, Adam Skellos, was sentenced to six and a half years behind bars. Global News twenty four hours a day, powered by our journalists in more than
one fifty news bureaus around the world. From the Bloomberg News Room, I'm Ramie in escent Cio, Charlie, and we thank you and again recapping stocks higher SMP five hundred index up point now to two thousand sixty five, a gain of point one percent. I'm Charlie Peloton. That's a Bloomberg Business flash. You're listening to taking stock with Kathleen Hay and Pim Fox on Bloomberg Radio. Drought drought is cutting the wheat production in South Africa to a four
year low. The wheat crop is estimated to be cut by about eighteen percent. Does this offer an investment opportunity? Let's find out from Sal GILBERTI. He is the president and the chief investment officer and co founder of two Creum Trading LLC. He's based in Brattle Burrow, Vermont, South Thank you very much for being with us. Good to be here. Just tell us a little bit about two Creum Trading and what it is you specialize in and
how you came to find this particular area of investments. Sure, um, Well, I started way back at cargill Um in the eighties, and so I've always had interest in energy and agriculture come from an agricultural family. And um, there weren't any e T s um single commodity ets available once e T S became popular with it particularly for gold and oil, for single commodity AGGS, and and for corn, which is
just an enormously important crop globally. And so I started to graham with some partners and some investors, and we are the sponsors of single commodity e t F to trade on the New York Stock Exchange ETPs um. Corn is the corn fund tickers c O r N, Wheat is a wheat fund, easy tickers w E A t UH, soybeans s oy B, and sugar is kNs c A N E. And so we we believe that investors buy
and large the large majority investors don't trade futures. They don't have access to futures, they don't have the expertise they need to trade a leverage product like that. And we develop these et p s in order for the the average investor, M retailing institutional to gain direct exposure to these important agricultural products right on the New York
Stock Exchange. Well, so let's speak and by talking about corn then because I note that corn futures for July delivery up about one percent to three dollars and eighty two cents a bushel tell us about the long term trends in corn. Long term trends and corn, along with soybeans and wheat, are the usage continues to increase. It's
it's primarily driven by population growth. Globally, the population expands by roughly seventy five to seventy eight million people per year, which is to put that in perspective, it's hard for me to grasp those numbers. That's two states of California. It's the equivalent of the population of California doubling every
year as new added population on the planet Earth. And in order to sustain the use of of the agricultural commodities that all those people use, you would need arable land added to what is already arable land, um twice the size of Vermont. That land area to be added every year just to feed the new people and corn, corners and everything. If you if you go to fill up your suv a service station, UM, You're going to use about a bushel of corn because of the ethanol
content of that gasoline. That's corn's number one use in the United States, it's actually the number two used globally. Globally, the number one used for corn is animal feed and so any meats that you consume, any animal proteins that you can sue, including aquacultural raised fish, that's going to use corn as well. That's corns second largest use. If you use paper, you're looking at corn starch to hold that together. If you drink sweet and drinks corn syrup.
Those are corn top four uses. They you know, the little plastic cups should get at summertime picnics with the green stripe around them, they're made from corn. Um. Consumers in the modern global economy cannot exist without corn touching their lives during the day, every day in multiple spots. And so corn is an incredibly critical commodity that people should look at with their financial advisors, because you know, most people with whom we speak they have oil exposure.
They understand that no matter what happens to the economy, they're gonna get up, they're gonna turn their heat on or off, they're going to drive their car um, They're going to use energy, but they're also going to use food, and they're going to use the products that also UM are derived from these these crops of corn, soybeans, and wheat in particular, So you're bullish on the price action in corn, soybeans, and wheat UM. I think when you step back and look at it, the global demand is
such that I'm definitely bullish on usage. So I have no doubt that we will use more of those commodities over time as time goes on deep into the future. In terms of price action, you know, we've seen global usage going up, but the past three years have been in deep bear markets for for all of these commodities, and the reason is that they're supply driven. The demand
is very steady, it's very inelastic. Farmers respond very quickly, and so what you have is we've had perfect weather for three consecutive years and that's given us um ample crops, ample supplies. But with the usage basically unrelenting, it's growing at an amazing rate, particularly soybeans and China China UM. You know their economy. I was just listening to a
webinar from JPMorgan Asset Management. They were highlighting how the Chinese GDP contribution to growth has declines in two thousand nine, yet the imports of soybeans, of rocketed So I find it very interesting that the last thing people will do is allow themselves or the animals to be cold or hungry, and yet many people overlook agricultural commodity is a key component of exposure in their portfolios. Now, so you begin by just talking about futures, is using e t ps?
Is that less volatile than futures trading? Uh? Not necessarily e tps because they hold futures and are there unleveraged UM. So you know, they make it pretty easy to understand. But because they hold futures, they are likely to be as volatile as futures. I think the advantage to using an et P is one doesn't need the expertise to deal with UM the leverage the futures entail, and one
doesn't need the expertise to roll. Remember, contracts expire and you have to either do something about that if you own it, or you know, a whole bunch of corn roll it every month. Thank you very much, Sal GILBERTI. He is the president and the chief investment officer and co founder of two Creum Trading. They're based in Brattleborough, Vermont. Bloomer Taking Stock is brought to by Autie Metal Ends in Secauka's New Jersey, powered by Benzel Bush, offering a
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