Freak Monsoon Weather In Brazil And India Creates Unique Profit Opportunity

Freak Weather In Brazil And India Creates Unique Profit Opportunity

Date 22/08/2008

The Right Side

Ben Traynor

It’s monsoon season in Asia. I’ve never experienced a monsoon first-hand. But my brother, who lives in South Korea, has told me all about them. He remembers the first time he was caught in a major downpour.

"I was soaked through," he says, "as if I’d just run through a fountain. Then my Korean friend said: ‘This is nothing. Just wait until the monsoon starts’. I thought that was the monsoon!"

Monsoon season is a big deal — especially for Asian farmers. This year, however, it’s been something of a disappointment. Take India. Indian farmers rely on the monsoons to provide 80% of the country’s rainfall. But this year there’s been a lot less rainfall than usual. Relatively speaking, it’s been freakishly dry... Brazil, meanwhile, has the opposite problem. Too much rain — and in the wrong places. It’s supposed to be harvest season there now. But the weather is hampering efforts to bring in the crops.

It all adds up to a unique — and unexpected — shock to the agriculture market. And my colleague Manraaj Singh has spotted an interesting profit opportunity for investors who are quick off the mark... Regular readers will know Manraaj as our emerging markets guy. Both Brazil and India are regularly under the Manraaj microscope. His knowledge of these two countries has led him to discover a rather interesting soft commodities play.

In fact, Manraaj tells me that this commodity could be the next to take off — like gold and oil did earlier this year.

Find out how, if you’re quick, you could be in on the next great commodity boom.

Get ready for another crack at gold (and oil too)

"Gold and oil will rise again. So you need to be ready." — Garry White

I saw an interesting story on Reuters this morning. The US mint has suspended the sale of gold American Eagle coins.

You see, the gold price has fallen recently. And coin buffs scent a buying opportunity. And the stock of one-ounce bullion coins is completely sold out.

"Due to the unprecedented demand for American Eagle gold one-ounce bullion coins, our inventories have been depleted. We are therefore temporarily suspending all sales of these coins," said the US Mint in a statement to coin dealers.

Has the gold market bottomed out? Maybe... maybe not... But Garry White is confident that whether or not it has yet found its low, gold will go back up

The same goes for oil too. Oil bears have revelled in the black stuff’s recent fall from grace. There’s a bit of a told-you-so, it-was-a-bubble-all-along vibe going around right now...

Garry’s having none of it.

"I don’t know if I’ve missed it," he says, "but no massive and easily accessible supplies of gold or oil have been found the past couple of months. This side of the equation remains very tight." Garry has several reasons for believing this. But the key point to make is that investors who want to benefit from the next surge in gold or oil need to prepare right now!

The commodities markets will always be a bumpy ride. But this year has proved that, if you get it right, it’s most definitely worth it.

Yesterday Garry wrote a piece outlining his top reasons why gold and oil are still great investments.

I urge you to read it — and to take his advice.

Until Tuesday

Ben Traynor

Editor

PS I trust that, like me, you’re looking forward to the last Bank Holiday weekend of the year. To celebrate, I’ll be sending you something rather exciting tomorrow at 11 o’clock. It reveals how you can get your hands on a $651 share for only $10...

More tomorrow...

Selected articles:

Manraaj Singh on the next great commodity boom.

Garry White on why gold and oil are still great investments.

The Daily Reckoning — Breaking point for America’s Empire of Debt?

We are about to witness a huge drama — one that will, ultimately, determine the fate of the United States of America... and the whole human race.

Before us is a clear and present danger. There is no doubt about it. Anyone who cares to look can see it. If something is not done to protect ourselves against it, the results will be either disastrous or fatal.... we’re not sure which.

This week, Addison Wiggin’s movie I.O.U.S.A. opens in 358 theatres across America. It is not merely a documentary film... it is also an expression of hope for our species. The question at hand — the real theme of this monumental drama — is whether a group of people can change the course of history.

You can read the Daily Reckoning in full here.

P.S. If you enjoyed this article you can find out more about our free email, The Right Side by clicking here.

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