Grains Oilseeds

[earthfarm]

Leo I agree with your sugar thoughts. I managed to head for the exit just before the big drop the other day on sugar but I like you see it as a technical move more than anything else. Will be looking to get in again soon and don't expect to see the price of sugar correct much to the downside. We have to remember the Brazilians are able to turn sugar into ethanol for around US$35-45/barrel. The other factor here is a lot of sugar beet acres have been lost to cereals in Europe and sugarcane acres have been lost to rice/corn in the sub tropics/tropics.

I agree we are looking to take out the all time high in the next year or two so will be focussed on the back months of sugar. I like how the contango premium is tiny. That's a big opportunity when you can buy time in a story so cheaply. Its currently the same case with the deferred feeder cattle.

Must admit I haven't been following the metals but was watching aluminium closely as I see it as the 'energy' metal. Very energy intensive to produce and the world's transportation system must replace a lot of iron with aluminium. I think that is the beauty of commodities. You can pick a bunch to follow and formulate an investment theme. Mine centres around energy and food though I tend to chase the opportunities arising from energy inflation through the foods, eg sugar. I think maybe even corn is coming up for a buy if it can work down to the 6 buck mark on the Dec 08 contract. I don't buy that the US corn crop is back on track when you read through blogs on the agriculture websites like agweb.com.

Good to have you on board here and feel free to post any interesting newspieces you come across and more of your thoguhts when you feel an opportunity is coming up. Good luck.


Got agricultural exposure?