05-16-2012, 09:52 AM
Grieve Wrote:Long term, I think food (and potash) prices are going to the moon, because of the growing population and growing middle class in developing countries, but we probably have to get past the current economic issues before we see too much more movement.
The problem isn't a lack of supply for people though, its transportation and distribution. Supply/demand isn't going to change much more, especially as we are steadily increasing the amount of calories per acre in crop distribution.
I think a lot of swing in food commodity prices is dependent on transport and politics (i.e. countries which subsidize which crops). We all know how unstable politics can be and I can tell you that ocean transport ain't a market I would personally invest in with confidence despite the fact that I deal with it every day..
I'd stay away from it and gamble on things you can better predict.
Then again, I think poker is a better investment than most stocks and commodities....
