The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor

This is a one way ticket that takes you on a wonderful journey into the vast world that is the stock market through my eyes, my point of view.

Saturday, April 15, 2006

Spotting Trendz: Soy and Cattle Futures

Hey ladies and gents,

You know, I really like diversification. As the saying goes, variety is the spice of life. And its true. This is why I am also very interested in commodity futures. I have been right on several in the last few months. For instance, I have been able to accuratly spot bottoms and subsequently uptrends in Corn, Sugar, Heating Oil, Gold and Crude Oil. Now it seems that Cattle and Soy Beans are ready to come back with a vengence.

Lets look at Soy. At 5.77, it has come down a long way. My theory is that billions of lactose intolerant Chinese people (and Indian) will depend on it. Just like the demand in China and India drove up Oil, Precious Metals and Steel/Aluminum prices, the same will happen with Soy Bean prices, espcially since its a staple food for them and can also be used for Soy Milk. I am not 100% sure if the cattle demand will be driven by India and China since many are Buddhists and forbid the eating of cows, but we'll have to see. I know the last bit may sound rather funny, but I'm dead serious about it. =)

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