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Sugar is Just a Preview of the Next Commodity Boom

 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. For more details on how to play these moves, please click here