Ag Commodities Set To Be Star Performer Of 2009

Agricultural commodities are set to lead the way in 2009, outperforming metals and crude oil, some analysts are starting to say.

A bad crop year for coffee in 2009, could see the world run dry, they add.

It would appear to make sense that if anything is going to stage a price recovery then food commodities should be the first to do it.

A by-product of the current malaise that the world presently finds itself in is significant cutbacks in fertiliser and insecticide applications. Sales of fertiliser in Brazil for example were down by more than a third in October compared to a year ago. That potentially leaves crops perhaps more vulnerable in 2009 than they have ever been. This could mean significantly lower yields on many agricultural commodities next season.

Scare-mongering bollox or astute forward thinking?

"When everyone's a buyer, let them have it. When everyone's a seller, take it off their hands."

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