| The financial media has been focusing on the financial storm brewing on Wall Street, but today I'm here to tell you about an upcoming storm of a different sort. You see, the weather can have a palpable impact on financial markets, and right now it looks poised to send one of my favorite soft commodities soaring. I think the coffee price is heading higher. Right on cue, the announcement last week of higher storm estimates for the 2010 hurricane season has started to impact commodities. The National Oceanic and Atmospheric Administration, is predicting an above-average year of tropical storms for the Atlantic basin. According to USAToday: The agency's forecast for 2010, released today, calls for 14 to 23 named storms in the Atlantic Ocean, Caribbean Sea and Gulf of Mexico.Some of the markets most affected by hurricanes are surely the soft commodities - coffee, sugar, and cocoa - which I want to discuss now. Storms are a big deal for commodities because they impact the supply and demand equilibrium that would otherwise take place in the market. If a major storm system severely restricts coffee production, for instance, supply gets choked off, and prices rise as a result. That's a very good thing for commodities investors who place bets expecting prices to rise during storm season... Right now, I think that one particular soft commodity - coffee - could be best poised to profit.
Coffee looks ready to test the $1.38 level for the third time since April. A strong triple bottom with prices holding $1.30 January, March and now April/May is very encouraging for bullish rallies. Here's more from Bloomberg: Coffee futures climbed the most in four weeks after a tropical storm slammed Guatemala, Central America's largest producer. Cocoa also gained.When it comes to staking out your own coffee position, time is of the essence... Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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INVESTMENTS IN INDIA
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
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