Category: Agricultural Commodities
The analysis published under this category are as follows.Thursday, April 24, 2008
How to Protect Yourself and Profit from the Global Food Price Crisis / Commodities / Agricultural Commodities
When the leader of the United Nation's World Food Programme warned that a "silent tsunami" of hunger is sweeping the globe because of soaring food prices, a lot of folks probably viewed it as just another clever sound bite tossed off by a bureaucrat.
Don't you believe it.
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Monday, April 21, 2008
Global Grain Prices Reach Record Levels– Fuel Boom In Agricultural Sector / Commodities / Agricultural Commodities
The upward trend in grain and food prices continued last month. Many exporting countries limited agriculture exports, or raised export taxes, to insure adequate domestic supplies. Global inventories of most grains remained at low levels – levels not seen in decades.
Should adverse weather in any of the major global grain producing regions impact this summer's crop, a crisis may erupt in the agriculture sector – which is already under enormous strains. Last month the following developments occurred:
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Thursday, April 17, 2008
No Bubble in Agricultural Commodities / Commodities / Agricultural Commodities
All investors have become contrarians and are now experts in being able to spot bubbles. Hence, they all are fully aware that a bubble exists in agricultural commodities at this juncture. Really, you can listen to just about any financial source and hear someone warning about the epic bubble that is evident in agricultural commodity prices. However, some of these same folks were completely blindsided by the collapse of the tech bubble in 2000. And they also were shocked that real estate prices could ever decline in value. Of course, this new class of maverick investor is also currently incapable of viewing the real bubble occurring in the Treasury market (it doesn't bother them that real yields on government debt are negative). The only thing they are sure of is that agricultural prices are poised to plummet.Read full article... Read full article...
Thursday, April 17, 2008
Global Food Crisis- How to Protect Your Portfolio / Commodities / Agricultural Commodities
Sean Brodrick writes: The United Nations' Food and Agriculture Organization (FAO) said that world cereal production may jump a record 2.6% this year as farmers boost plantings.
In other words, supply is fine.
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Wednesday, April 02, 2008
Soaring Rice Prices Cause for Developing World Food Riots / Commodities / Agricultural Commodities
Rice is an all important staple food in much of the world. In the past year, the price of rice has rocketed from under $11 to more than $19, and even above $20 in overnight electronic trading. These prices are now the cause of food riots around the world. In recent times they occurred in Guinea, Mauritania, Mexico, Morocco, Senegal, Uzbekistan and Yemen (NY Times,29 Mar 2008) . In the Philippines, the government is worried about hoarding as that nation imports almost twenty percent of its rice consumption. Restrictions on global supplies are slowly developing.Read full article... Read full article...
Sunday, March 30, 2008
Why Food Prices will go through the Roof in coming Months / Commodities / Agricultural Commodities
A deadly fungus, known as Ug99, which kills wheat, has likely spread to Pakistan from Africa according to reports. If true, that threatens the vital Asian Bread Basket including the Pu nj ab region. The spread of the deadly virus, stem rust, against which an effective fungicide does not exist, comes as world grain stocks reach the lowest in four decades and government subsidized bio-ethanol production, especially in the USA, Brazil and EU are taking land out of food production at alarming rates. The deadly fungus is being used by Monsanto and the US Government to spread patented GMO seeds.Read full article... Read full article...
Wednesday, March 19, 2008
Agricultural Commodities Correction Buying Opportunity / Commodities / Agricultural Commodities
Corrections are a friend of investors. Same is true for professional traders. Traders on Main Street enjoy them less. Learn to take advantage of them, rather than be buffeted by them. Investors should be anticipating any possible correction in their favorite industries in order to make timely purchases. Currently, for example, the Agri-Food sector may be developing one of the first good corrections in some time. Cash prices for many Agri-Food commodities have retreated.Read full article... Read full article...
Tuesday, March 04, 2008
Egg Prices Hit New Highs as China and India Change Agri-Foods Dynamics / Commodities / Agricultural Commodities
Easter Bunny may have serious trouble making deliveries this month. Changing fundamentals in the Agri-Food sector have pushed the price of eggs up dramatically. Easter Bunny might not be able to afford as many eggs this year. This week's graph is of cash price of a dozen eggs. While headlines may be filled with dramatic price move in wheat, eggs have been doing quite nicely. After touching about $0.63 per dozen earlier this year, that price moved to almost $1.49 six months later.Read full article... Read full article...
Wednesday, February 27, 2008
Food Inflation Set to Rise Further and How Best to Invest in Agriculture / Commodities / Agricultural Commodities
There was a clear consensus emanating from the annual U.S.D.A. Agricultural Outlook Forum, which I attended in Arlington, Virginia last week: most in attendance believed that food prices will continue their assent of last year (4%) and perhaps rise by another 3.8%-4% in 2008. U.S. food price inflation will be the result of increasing cost pressures from higher agricultural input prices. These prices, in turn, are the result of strong global demand, continued weakness in the U.S. dollar, the push for renewable energy, low stock-to-use-ratios and global weather that has not been conducive to crop growth in certain regions.Read full article... Read full article...
Friday, February 22, 2008
Experts: Global Food Shortages Could ‘Continue for Decades' / Commodities / Agricultural Commodities
Global inventories of grains are nearing historic lows, while twenty percent of the U.S. corn crop this coming year will be used for ethanol production. Meanwhile wheat, rice and soybean prices have reached all-time highs and corn prices have jumped to a 12-year high.
Demand for grain continues to increase adding upward pressure on the price of agricultural products. We expect this trend to continue. Recent developments in the sector, found in various publications, include:
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Tuesday, February 05, 2008
Agri-Food Stocks Boom Could Continue for Another Decade! / Commodities / Agricultural Commodities
Financial engineering has now demonstrated that the destruction of investment wealth can be accomplished for faster and more efficiently using computers. Monoline insurance companies are latest tool in the eradication of wealth. Some way must exist for investors to escape these financially destructive experiences. That escape route may be to seek out and move to trends of future. Agri-Food stocks, as shown by this week's chart, have in past year done quite nicely, and likely will in future. Of course, they will have corrections for such events are natural and healthy events for markets. Corrections provide an opportunity to acquire positions. Why have Agi-Food investments done well?Read full article... Read full article...
Tuesday, January 22, 2008
Agricultural Commodities are the Future Not Bank Stocks! / Commodities / Agricultural Commodities
Ok, so you have never looked at a chart of prices for feeder steers. As the equity markets continue the traumatic process of shedding yesterday's themes in order to move on tomorrow's ideas, investors are going to look at a lot of charts new to their experience. Despite Bailout Bernanke's efforts to save the banks, the financial stocks are passing into history. Agri-Food is the future, not bank stocks.Read full article... Read full article...
Friday, January 18, 2008
Three Reasons To Invest In Agricultural Commodities Now / Commodities / Agricultural Commodities
Agricultural commodities surged in 2007. The S&P GSCI agricultural commodities index rose 31% in 2007, its best performance since 1981. Wheat and rice prices, for example, hit record highs as a result of low inventories. Soybean prices soared to a 34-year high while corn prices jumped to an 11-year high.Read full article... Read full article...
Wednesday, January 09, 2008
Agri-Foods Demand Fueled by China - Are Governments Starting to Hoard Grains? / Commodities / Agricultural Commodities
Why are Agri-Food prices rising and stock prices falling? Does a connection exist? Do the markets understand that world is shifting to a new reality? In past decades, around the world a vast amount of money was squandered creating surplus housing and investment bubbles. In same era, little was done to deal with with growing inadequacy of world's ability to feed itself. In the coming years, only way of balancing Agri-Food demand and supply is through higher prices.Read full article... Read full article...
Wednesday, January 09, 2008
Seeds of Destruction, the Hidden Agenda of Genetic Manipulation - Review Part 3 / Politics / Agricultural Commodities
This is the third and final part of William Engdahl's powerfully important book about four Anglo-American agribusiness giants and their aim to control world food supply, make it all genetically engineered, and use it as a geopolitical weapon. The story is chilling and needs to be read in full to learn the type future they plan for us. Parts I and II were published and are available on this web site. Part III follows below.Food is Power
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Monday, January 07, 2008
Seeds of Destruction, the Hidden Agenda of Genetic Manipulation - Review Part 2 / Commodities / Agricultural Commodities
William Engdahl's book is a diabolical account of how four Anglo-American agribusiness giants plan world domination by patenting life forms to gain worldwide control of our food supply and our lives. This review is in three in-depth parts. Part I was published and is available on this web site. Part II follows below.Washington Launches the GMO Revolution
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Monday, January 07, 2008
Panic Buying of Agricultural Sector as Global Grain Inventories Hit Record Lows / Commodities / Agricultural Commodities
The agricultural sector was one of the areas we found most attractive in 2007. We expect that will remain the case. Long term global price and demand trends remain positive. Recent developments include:Read full article... Read full article...
Tuesday, December 25, 2007
Agricultural Foods and Commodities 2008 Investment Opportunities / Commodities / Agricultural Commodities
With the demise of 2007, investors are looking to a new year and new opportunities. Some investors continue to hope collapse of housing and financial sectors will suddenly be reversed. Market strategists have called how many bottoms in housing sector? Which U.S. financial giant will be next to sell out to a foreign investor? Bubbles, or market sectors, do not reinflate, or reemerge. As shrewd investors move on to next stock market leadership, Agri-Food sector will be an obvious play.Read full article... Read full article...
Sunday, December 23, 2007
Agriculture Prices Continue Upward Trajectory, Present Investment Opportunities / Commodities / Agricultural Commodities
Prices remain elevated and the long term global price and demand trends remain upward for agricultural products. We continue to find the global trends in supply and demand compelling for firms in this sector.
Recent developments include:
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Thursday, December 13, 2007
Invest in the Agricultural Commodites Boom as Food Inflation Soars / Commodities / Agricultural Commodities
If the Fed were smart, it would have slashed interest rates to the bone this week, instead of dilly-dallying around. That way, everyone would know exactly where the economy stands (on the edge of a cliff) and what the Fed was doing about it.
But that's not how things work. Instead, the high priests of finance like to "tinker" with the economy, and in my opinion, they do a lousy job of it. In the end, the Fed almost always ends up making matters worse.
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