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Sunday, February 6, 2011

Back to basics food and commodities investment

The world has expanded from a population of 1 billion to over 6 billion in a mere hundred years. Did crops grew 6-7 fold in a hundred years? Did crop yield grew that much? And even if it did, it is now not merely to feed the human mouths.

A huge proportion of food crops are cultivated for meat. Meaning to feed animals such as cows, sheep, chicken. And strangely or not, most of them are eating corn or maize or a composition of that. Which is quite a diet change for these animals. Cows are supposed to be eating grass. Chicken (free range) are supposed to eat grains, insects, worms.

Now back to this pressing issue. Food crops, food supplies and where is it heading. Done? Your imagination and subconscious mind with daily feeds of data and news, would have sum up a very good conclusion. Scarcity. It will be basic economics at the most rudimentary level. Supply is falling short of demand.

Therefore - look at commodities. Noble Group and Olam are among the top picks to invest. They have spread their corporate presence even to regions like Africa now.

Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real TradingHot Commodities: How Anyone Can Invest Profitably in the World's Best MarketZambia, 4th (Bradt Travel Guide Zambia)

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