Monday, June 7, 2010

Sugar. The sweetest things in life are not free.

Sugar.  The white crystalline goodness that I no longer put on my cereal in the morning and no longer drink in my Coke.  Infectious Greed posted this graph over the weekend.


As you can see, sugar has taken a beating.  Since I consider myself leaning toward a contrarion (sp?)/ value "investor" stance, I had to look up the reason(s) for sugars decline.  What are they?  Well google "investing in sugar" to find a ocean liner full of info.  Some say sugar is crashing others say its only a trough between peaks.  I think it all depends on China (doesn't everything depend on China now-a-days) and the burgeoning middle class' taste for the sweet stuff.  For me, I will keep up with the idea of investing in sugar or a derivative investment vehicle for sugar, since I'm looking for a job and this gives me something to model (excel spreadsheets, not what I look like in sugar). FWIW I would GLADLY pay $0.05 - $0.10 more for my Coke if it had real sugar instead of high fructose corn syrup.

PS - Notice that the USD is beating Gold YTD.  Hum very interesting.

Disclosure: At the time and date of this posting I have no positions in sugar.

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