All Posts Tagged With: "soft commodities"
Cashing in on Commodities: Life’s Little Luxuries are Costing More than Ever Before
This is the fifth installment of a new Money Morning series highlighting investment opportunities in the global bull market in commodities. Soaring prices of grains, dairy and meat have been grabbing global headlines. But other commodities have been on the rise as well.
England’s Green and Pricey Land
It’s all doom and gloom in the British residential property market. By contrast, farmland values are rocketing at a record pace.
There Is No Commodities Bubble Say Economists
There is no commodities bubble, at least according to the majority of economists surveyed by The Wall Street Journal.
This from the WSJ:
Fifty-one percent of the respondents said demand from China and India was the prime factor in soaring energy prices, and 40% said demand was the chief contributor to rising food costs. Constrained supply was cited second most-often; 20% blamed supply problems for higher food prices and 15% for increasing energy prices.
“It’s a combination of demand and supply issues,” said Joseph Carson of AllianceBernstein.
“Soft commodities are now the best-performing sub-set of the commodity bull market,” says Eric Roseman in the Offshore A-Letter.
“The world’s supply is withering. The demand for these precious commodities is booming in emerging markets, while the world’s crop yields are plunging, trade restrictions are suppressing supplies and the bio-fuel craze is stealing crops for energy, rather than food.
Read on to find out about the blizzard of commodities ETFs launched over the last 12 months. These new ETFs allow both individual and institutional investors access to hot commodities like coffee, wheat, sugar and corn, to name only a few.
Food Crisis Hits America: California Food Rationing
The food crisis — caused by sky-high rice prices and grain prices — has now hit Americans, prompting many visitors to this site to ask: Is there a rice ETF?
According to the Washington Times, “Costco and other grocery stores in California reported a run on rice, which has forced them to set limits on how many sacks of rice each customer can buy.”
Meanwhile, reports the paper, “Filipinos in Canada are scooping up all the rice they can find and shipping it to relatives in the Philippines, which is suffering a severe shortage that is leaving many people hungry.
Food Crisis Worsens as Rice Prices Surge
Rice prices have hit fresh records after World Bank officials said Thailand, the largest exporter of the grain, may restrict exports, worsening the global food crisis.
The price of rice, which has doubled in the past year, jumped 2.3% in Chicago today.
“Soft commodities are now the best-performing sub-set of the commodity bull market,” says Eric Roseman in the Offshore A-Letter.
Commodities Trading: Gain from Grains, Despite the Falling Dollar
No other asset class comes close to commodities over the last six years. Not stocks, not bonds, not real estate and not even most emerging markets. In fact, even during the worst credit crisis in the United States in 60 years, commodity benchmarks continue to hit new all-time highs in 2008.
Farmers Are Lovin’ this Global Struggle for Food
Right now, countries around the world are facing food shortages. There’s just not enough to go around, when prices of corn, soybeans, rice and other basic staples are soaring in price.
Why Grain Prices Will Triple
I’m bullish on agriculture.
I first turned bullish in 2005 when I realized the ethanol boom would consume a third of the U.S. annual corn crop. As I investigated this story, I realized global population growth, rising prosperity in Asia and around the world, shortages of arable land and clean water… and a bull market in commodities… would send agriculture prices through the roof.
Organic Grocers Miss the Cut
I spent 15 minutes on Sunday morning petting veal.
Wheat’s Major Price Reversal
Over the last 12 months, the biggest bull market in commodities has NOT been in gold, platinum or tin. Instead, the grains - or more specifically, wheat - have dominated the raw materials complex since late 2006.
Indeed, spring wheat has been the commodity king over the last year, during the lowest stockpiles of wheat in 60 years.
On February 25th, the price of top-quality spring wheat on the Minneapolis Grain Exchange surged more than 25% in one day.
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