Tag Archives: commodities

Top 10 Year-to-Date U.S. Export Markets for Major Crops (Table)

11 Jun

Volume in metric tons of major commodities exported year-to-date through to April and prior year-to-date.

Bloomberg

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JIM ROGERS: Debts Going Through the Roof

8 Jun

Legendary investor Jim Rogers was on CNBC today explaining his investment thesis largely predicated on the rise of commodities and emerging market currencies. Some of the key takeaways were his continued concerns on US deficits and their inability to cap spending. Rogers said: “…debts in this country are skyrocketing. In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt.

If they close down the government, I suspect the dollar will go up. People would realize, they’re not going to spend money. They’re not going to close down the government. I would hope somebody would understand we are facing a crisis. The debts are staggering. We can never pay off these debts.” 

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TWO COMMODITIES POISED FOR A CORRECTION: Corn and Coffee future charts

5 Jun

The corn and coffee future charts are worryingly ominous. Investing in these commodities have largely had successful outcomes to the extent that they have significantly risen in price and have offset real concerns about inflation and money printing. The fundamental positive story strengthening the bull case for commodities in terms of population growth, diet changes correlated with rising incomes and the growth of emerging markets have also reinforced this thesis. However, investments are also about timing and right now when prices are near highs it would not be appropriate to make significant outlays in this direction. 
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China’s farmland pursuit receives a cagey response

27 May

China’s interests in controlling vast quantities of productive farmland remains largely unchecked. There is a clear trend and divergence away from being merely the purchaser of raw commodities to being the owner of the productive assets. Resources are finite while demand remains strong.

The New York Times reports on China’s growing interest in controlling agricultural land and resources.

Why commodity prices are going to press even higher

26 May

The greater access and liquidity penetrating the commodity markets have significantly contributed to the upward momentum and speculation chasing natural resources and commodities. It is important to note that this speculation is not without cause. The secular bull market in commodities is what has captured this speculation. Commodities and natural resources account for 61% of total net assets allocated to ETF’s.  Trading commodities and natural resources were once restricted to specialists and large institutional money managers’. The removal of that barrier to entry has caused some seismic shifts and parabolic moves in a number of commodities. Changes in worldwide supply-demand dynamics, money printing and inflation, and weather induced factors have propelled prices even further. The greater access and liberal margin requirements in trading commodities is likely to induce a marked increase in volatility as has already been witnessed.

Commodities and natural resources are being driven higher by fundamentals. The challenge going forwards though is trying to capture upside without getting trapped in the merry-go-round.

Source: ICI 2011

Invest in commodities with Jim Rogers

10 May

Have you got your BSc in Agriculture and Farming yet? Legendary investor and author, Jimmy Rogers, spends 40 minutes at a Dutch University in a somewhat unstructured and rather peculiar format. Skip to 8.50 where Rogers begins the show. 

 

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