Is a Food Crisis on the Horizon?
First off I am not doom and gloom. Lets take apart the potential possibilites.
Firstly there exists a liquidity issue were farmers do not have access to credit as they once did. Thus they are limited to there purchases
of seeds,fertilizers and spare parts.
Second prices have fallen so dramatically of so many commodities that is not profitable to grow products at the current pricing. This
is not just agriculture but mining as well.
Thirdly and probably most importantly there are droughts all over the world. There are droughts in California, Australia and now in China.
Think of the population of China. Northern China a region that grows three-fifths of China’s crops and houses more than two-fifths
of its people is in a drought. Do remember last year what happened to rice throughout Asia. There were shortages and later rationing.
These are facts. The question is how do you benefit. Isn’t it possible with all the moneys being printed throughout the world there
could be inflation? Isn’t the ABCs of economics? Put the potential of inflation and the pieces I mentioned prior, isn’t possible to see
agricultural products move up in price? If you agree to that statement the potential to make money is in managed futures. Everything
has risks and managed futures has great volatility and risks attributed to it. One needs to be an experienced investor to consider this
Let me know what you think?