Wholesale Garlic prices in China are up 400% as compared to last year.
Three reasons for the price rise
1. Garlic was suppose to be the cure for H1N1. But thats a myth.
2. Speculators have taken huge futures position. The stimulas money has been used to bet on agri commodities.
3. Garlic was the worst affected corp in 2007 with an acute shortage. This has resulted in the demand supply gap.
Why invest in stocks if you can pick a couple of such agri-commodities?
What will be the next bubble agri-commodity?
My hunch tells me it would be something in spices. More on it once I have made some money.
No comments:
Post a Comment