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The Next Commodity Speculation

The Next Commodity Speculation. The Current Picture. All commodities like gold, oil, palladium, etc are through the roof. Natural gas too is up significantly. Food inflation is all over the news. Potash is all over the news. Agriculture is all over the news. Let’s look at Agriculture.

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The Next Commodity Speculation

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  1. The Next Commodity Speculation

  2. The Current Picture • All commodities like gold, oil, palladium, etc are through the roof. • Natural gas too is up significantly. • Food inflation is all over the news. • Potash is all over the news. • Agriculture is all over the news.

  3. Let’s look at Agriculture

  4. Rice up 100% in 1 Year

  5. Soybeans up 100% in 1 Year

  6. Corn up 100% in 1 Year

  7. Wheat up 100% in 1 Year

  8. What’s the next hot commodity?

  9. What does Canadian investment guru Rohit Sehgal think? Rohit Sehgal is renowned for his ability to make accurate macro-economic calls – and profit from them.

  10. Sugar!

  11. Globe and Mail Article about Rohit on February 20, 2008 More recently he has been increasing exposure to natural gas stocks. His energy picks include Duvernay Oil, EnCana, Suncor Energy, Petrobank Energy & Resources, Addax Petroleum, Petrobas, and OAO Gazprom. He is also bullish on agricultural stocks such as Potash, Monsanto and Agrium. This sector will benefit from improved diets among the emerging middle class in developing countries, and crops being used for biofuels, he added. He has also been buying stocks of sugar companies, including Brazilian-based Cosan SA and India-based Bajaj Hindustan Sugar. “We think sugar is at the cusp of higher prices over the next two or three years,” he said.

  12. Possible Reasons • Sugar is an ingredient in ethanol which is being burned for fuel. Especially in Brazil. • Since the price of oil, fertilizer, and pesticides have all gone up, the costs of producing sugar has too. • All other agriculture commodities have gone up over the last year, except sugar, which has gone down. So it has some catching up to do. • China and India has increased demand for sugar as their middle class starts to eat like Westerners.

  13. Ways to Speculate in Sugar • Futures • Sugar ETF on the London Exchange (LON:SUGA) • Sugar Stocks: Brazilian-based Cosan SA and India-based Bajaj Hindustan Sugar • Buy a mutual fund managed by Rohit Sehgal.

  14. References • Commodity Chartshttp://tfc-charts.w2d.com/menu.html • Dynamic Mutual Fundshttp://www.dynamic.ca • Globe Fundhttp://www.globefund.com • Globe and Mail articlehttp://docmgt.dynamic.ca/documentdownload/getdocument/468/?s=8a40de4b-b653-4760-ab04-500fe984cc2d&lang=en • Corn and Sugar - Two Energetic Commoditieshttp://www.safehaven.com/article-1474.htm

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