Friday, April 28, 2006

A bet on agricultural commodities

A recent article from the globeandmail.com highlights investor Jim Rogers' interest in agricultural commodities, an area which he feels might provide the next crop of opportunity (no pun intended, seriously) in the resource sector.

Investor and economic commentator Marc Faber has made similar recommendations in the not too distant past. I remember Faber highlighting some of these commodity picks in some of the past Barron's Roundtables, and I have a written note of Marc recommending Ags/Softs such as Sugar, Orange Juice & Coffee in a 6/24/04 interview with Financial Sense.

We've seen in recent months how the price of sugar has been propelled to higher levels, partly on the strength of the fundamental story, "sugar as energy". Will the other agricultural commodities rise on the back of increased Asian consumption or various new demand stories that will be revealed in time?