Hi all Mak followers, It has been a while since I have posted but I am watching all the posts with interest.
Things to keep in mind.
Corn- Prices are still heading upwards on the chart and looking very strong- requires large amounts of fertilizer
Wheat- Prices are still strongly moving up.
Rice keeping pace.
The northern hemisphere fertilizer time is coming up. Pre spring will require a bit of buying to get the material on the ground prior to planting. Some of the farmers will be holding off hoping the prices drop and then will lead to a bit of panic buying. This should see firmer prices prior to May.
All the recent newspapers are pointing to investment guru's pointing out the problems with Ag. this is due to higher food prices that are similar to the Food Crisis in 2008. We are not there yet with grains but it won't take too many rallies. Higher grain prices will lead to higher fertilizer prices. This is what caused the large rise in MAK in 2008.
Higher volumes in the last 3 weeks are very distinctive on the chart and indicate a large change in sentiment. As the stale bulls who have held this from its highs in 2008 down to here sell out (and there are many) or those who bought at the cap raise of 43 cents get out for a small profit this will temper the rises up. I think that you will see a more rapid rise if the SP gets to 70 cents, the momentum will pick up as more holders are positive.
The title of this post comes from the new mine manager at Baranquilla, a coal mine in Columbia. This fellow works for Vale (pronounced Vah Lay not the Aussie - Vayl, he corrected me on that). This colleague of mine informed me that Vale is pumping billions of dollars into the fertilizer sector (as you all can research on the web). I was carrying on about the China demand, his response was that Brazil was certainly carrying its own weight in increasing demand. All the big elephants have been taken was his line, all the cheap spots in places like Australia and Brazil have been acquired. Now mining is getting more expensive or comes with sovereign risk like Africa. So DYOR but remember the MAK threads have been banging on about Ag for the last 2 years, the grain prices are now telling the story. If you want to get into Ag, Mak is perfectly positioned to be highly leveraged for it.
For all those who are uncertain have a look at the STB chart or review the Extract (EXT) chart when it moved up due to the uranium story last year. This new movement upwards will have stronger legs and get to the $1.50 mark quicker than most expect. When the Verte agreement comes out of the blue which it must when the SP gets close to $1.
Cheers
Saracen
AEV Price at posting:
49.1¢ Sentiment: Buy Disclosure: Held
