Stephen Frankola

Sugar ETN Is Looking Sweet

hmm, i remember people saying the same thing when oil was at $150/barrel last summer


On Aug 18 12:11 PM Mad Hedge Fund Trader wrote:

> xcvn. I have been watching with some amusement the price action in
> world sugar, which has exploded from 16 cents/pound to 22 cents since
> June, because the world’s largest consumer, India, flipped from being
> an exporter to an importer. Besides demolishing the budgets this
> year for the big sugar users here, the chocolate, soft drink, and
> cereal companies, (and McDonald’s), the sugar spike is a wakeup call
> for everyone else in the commodity space. When sugar last peaked
> at 63 cents during the seventies, the Club of Rome was in vogue,
> and discussion of resource shortages and imminent global starvation
> was rife. That is over $1.50/pound on an inflation adjusted basis
> today. When global supply/demand get’s out of kilter for something
> everyone has to have, the sky is the limit on prices. Instead of
> the normal 10%, 20%, and 30% moves traders expect, they will be served
> up with gyrations of 10X, 20X, and 30X. I expect all commodities
> to have major moves up in the decade ahead. Sugar was just the first
> in line.