Which commodity is next?

[thereslifeafter87]

We are in the middle of a commodities boom.

So which commodity has not yet begun surfing this wave?

Which commodity has good demand/supply fundamentals, but hasn't already doubled in price?

Which commodity has been overlooked by investors?

Discuss.

[Mick100]

quote:Originally posted by thereslifeafter87

We are in the middle of a commodities boom.

So which commodity has not yet begun surfing this wave?

Which commodity has good demand/supply fundamentals, but hasn't already doubled in price?

Which commodity has been overlooked by investors?

Discuss.

I have been asking myself the same question thereslife
One group of commodities that are still at depressed prices are agricultural commodites. Rising energy prices are already beginning to push up production costs. The corn crop in the US is going to be significantly smaller in area this yr due to the doubling of the price of nitrgen fertiliser (made from nat gas) It's becoming much more costly to cultivate fields due to rising fuel costs. Marginal producers are being squeezed at the moment

In my view agricultural commods are going to be the next to fire
I'v been getting into position over the past few months.
.

[whiteheron]

Mick 100

Be careful to watch the cost side as well as the gross return side of things though
A higher gross return does not necessarily equate to greater net returns --- increasing costs can eat up a lot as well

[Mick100]

quote:Originally posted by whiteheron

Mick 100

Be careful to watch the cost side as well as the gross return side of things though
A higher gross return does not necessarily equate to greater net returns --- increasing costs can eat up a lot as well

The point that I was trying to make is that for some ag commods the increasing production costs are having the effect of reducing supply while demand remains constant or, in corn's case, increases due to ethanol demand. This can only lead to one thing - increased prices of these commods.
,

[trendy]

Land.

[Gofish.]

I suspect it will be forestry products.
Cost not so much an issue as the tress are there now, rather than seasonal crops.
Good 'ol NZ has recently sold a lot of its forests to the Americans who have taken a long view of the commodity cycle, and we may have now seen the bottom for forestry products.
Russians apparantly having trouble keeping up with Chinese demand.

[Mick100]

quote:Originally posted by Gofish.

I suspect it will be forestry products.
Cost not so much an issue as the tress are there now, rather than seasonal crops.
Good 'ol NZ has recently sold a lot of its forests to the Americans who have taken a long view of the commodity cycle, and we may have now seen the bottom for forestry products.
Russians apparantly having trouble keeping up with Chinese demand.

Yes, I agree Gofish
Are there any companies left in NZ that I could invest in - to make an investment in trees ?
,

[peter_s]

Rare earth minerals...LYC.

[thereslifeafter87]

I had a look at LYC, very interesting. I will look at it more in depth.

Cheers.

[donnie]

Ethanol might be one to look at try AAE ARW TPI