next commodities to boom

Sugar and cotton looking very ripe for moves upward. Meat futures already on their hyperinflationary journey north ...

Fundamentally cotton is seeing its competing oil based fibres like polyester hyperinflating with the price of oil and gas going gangbusters. Cotton is also facing pressure from the grains as better returns from growing grain steals acres away from cotton.

Sugar should be viewed as an energy commodity not a food and so its resistance to move along with oil whilst admirable is futile. I anticipate sugar prices to rally significantly into the last half of 2008. Sugarcane too is facing pressure from rice in the battle for acres. High rice prices low sugar prices in countries like India which is number 2 for sugar in the world of production makes it a no brainer to ditch the cane and plant rice wall to wall.

THE meats ... beef and hogs have put in a stellar week despite corn prices surging back to record levels. Previously when corn rallied the meats capitulated as operators dumped breeding stock. At some point the world will realise it has just culled most of the entire global meat animal herd and price rationing will begin ... IN EARNEST! Anticipate much much higher meat prices moving forward.

Time to learn how to trade commodities folks ... big inflation about to hit! Profit from it, don't pain from it.