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Kraft (KFT), General Mills (GIS), Hershey (HSY) and other major food companies warn the country...

Kraft (KFT), General Mills (GIS), Hershey (HSY) and other major food companies warn the country could 'virtually run out of sugar,' leading to layoffs and price spikes, unless the government eases back on import curbs.
Comments (7)
  • PCScipio
    , contributor
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    This is not necessarily a bad thing given our diabetes spike.
    13 Aug 2009, 09:39 AM Reply Like
  • FocalPoint Analytics
    , contributor
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    What they are probably setting up is an increase in their products prices... than once the sugar "shortage" is over, the prices never go down.
    13 Aug 2009, 11:06 AM Reply Like
  • Mayascribe
    , contributor
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    I don't consume a lot of sugar. Still have most of the same 5 pound bag I bought about 5 years ago. How much will you pay for it, Kraft?

     

    Brazil produces a lot of sugar; used for as an ethanol substitute for gasoline. Most certainly, Brazil has contributed to the sugar bubble.

     

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    Good point, User. Have food prices softened much since $4.00 gasoline? I've only noticed that milk came down significantly, but not much else.

     

    13 Aug 2009, 11:52 AM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5754) | Send Message
     
    Hi Maya! Yesterday morning I had to reverse out of my SDS position real quick... today the market is whip sawing... What do you think?
    13 Aug 2009, 12:01 PM Reply Like
  • Mayascribe
    , contributor
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    Roller coaster indeed. Biggest indicator I'm watching right now is the dollar. That Paulsen popped 2.7 billion into BAC is a definite market driver, too. Ironically, our political leaders (Congress) being on holiday might be the most underated factor of all.
    13 Aug 2009, 12:08 PM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5754) | Send Message
     
    "Ironically, our political leaders (Congress) being on holiday might be the most underated factor of all." LOL! Excellent point!
    13 Aug 2009, 12:36 PM Reply Like
  • Mayascribe
    , contributor
    Comments (9482) | Send Message
     
    User: While out splurging on a Philly roast beef hogie, I also thought that the good news coming from from the industrial sector; the blasts furnaces firing up, inventories being replenished, Cash for Clunkers, ect., is also driving the market.

     

    In the mail I just recieved from Well Fargo today:

     

    Taken from their 2009 Midyear Outlook pamplet:

     

    "In our view, the economy will begin a modest recovery by the end of 2009."

     

    Condensing their other viewpoints, they go on to state that inflation will remain low during the next year or two, and they expect the value of the dollar to weaken modestly. Further, they believe the March lows will stand, but caution that there may be a near term correction. During the correction, they expect to increase positions. They like the international markets, particularly emerging ones and recommend longer-term investors to "lean" into equities and away from fixed-income securities.

     

    With all of the above I mentioned, along with this report, I believe it's time to put up the sails. Time to port? Likely, mid-September to early October. I rarely trade using margin, but I am now.

     

    Although, maybe it might be better to weigh anchor at sea, fully stocked. With the World Health Organization predicting 1 out of 3 people on our planet will get H1N1, the viral threat theory backed up by Uncles Sam ordering 200,000,000 vacines...and schools will soon be opening...are we on the doorstep of a market wildcard?

     

    On a more humorous note, everytime my e-trading account gets a little beyond doubling, something hits the fan. I'm right there now!
    13 Aug 2009, 01:46 PM Reply Like
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