Great Day to Be Long Wheat, Beans, & Cotton!!
As indicated on my last follow up post to el cid, grains are great place to be right now. The crops in the south are rain deprived and the crops in the midwest are flooded. Finally, wheat, beans, & cotton lost acreage to corn amplifying these bullish weather events. So supply picture is great for bulls, bad for consumers.
Second, the demand picture is stronger than ever do to increased demand for corn for ethanol (as we all know the story) and increased export demand to emerging market growth.
Long Story Short, its the best place imo to have your money right now - uncorrelated to financial markets & carries a strong fundamental bull story.
Second, the demand picture is stronger than ever do to increased demand for corn for ethanol (as we all know the story) and increased export demand to emerging market growth.
Long Story Short, its the best place imo to have your money right now - uncorrelated to financial markets & carries a strong fundamental bull story.
posted by Not Sure if Al Gore or Global Warming is a Bigger Joke at
1:18 PM
1 Comments:
I agree with Silver, we can argue about being short China but there will be massive amounts of people moving into the middle class over next 5-20 yrs. 1 billion over 10 years moving into the middle class will drive the demand for more protein based diets. China is also a large importing of soybeans and I was just viewing genetically modified soybeans that will have ZERO transfat or soy beans that will have the same profile as Omega 3 (fish oil) and taste much better than the fish oil. There is a nice ag play for sure. Also, I saw a zero to low nitrogen corn seed. Considering nitrogen is 20-30% of the input cost to farmers that is highly correlated to the price of natural gas a no to low nitrogen seed would be huge and continue to devote the acres to corn thus also bullish for wheat and soy as acres will be at a premium. The ethonal demand I guess is nice but is really masking the demand for protein based diets coming out of India and more so from China. This is not a 1-2 yr play and considering there is not expanding acres that will be devote to farming these crops its hard to increase supply expect without improvements to increase yields….
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