Could Russia’s decision to ban wheat exports trigger unexpected backlash? Scott Nations of Nationshares is somewhat concerned.
He tells the desk that the ban could trigger a spike in food prices. “If foreign governments want someone to blame the handiest targets may be American conglomerates,” he speculates.
”Imagine what would happen if a foreign government put the screws to Cargill or ADM by blaming them for higher basic food costs,” Nations says.
As a result, if you’re bullish the space Nations also suggests buying put protection. For example if you’re long ADM he likes the December 28 put.
Learn more about this trade. Watch the video now!
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Trader disclosure: On Aug 10, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (PFE), (SU), (XBI); Terranova owns (GLD) Calls; Seymour owns (AAPL), (BAC), (GOOG), (POT); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman & Finerman's firm owns (BAC); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman & Finerman's firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (CSCO) call spreads; Pete Najarian owns (CTRP) calls; Pete Najarian owns (GS) calls; Pete Najarian owns (RIMM) call spreads; Pete Najarian owns (AKAM) calls; Pete Najarian owns (HPQ) calls spreads; Pete Najarian owns (V) call spreads
For Brian Kelly:
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (PFE)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (MED)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (INTC)
Accounts managed by Kanundrum Capital own (ECA)
Accounts managed by Kanundrum Capital own (UNG)
Accounts managed by Kanundrum Capital own (SPY) Puts
For Hugh Wynne:
Wynne maintains a long position in Duke Energy Corp. (DUK)
Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies EIX / Edison International.
The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking-securities related services and received compensation for such services AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EXC / Exelon Corp, FE / FirstEnergy Corp, PCG / PG&E Corp.
An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies AEP / American Electric Power Co Inc, DUK / Duke Energy Corp, EIX / Edison International, FE / FirstEnergy Corp, PCG / PG&E Corp.
In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services from AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EIX / Edison International, EXC / Exelon Corp, FE / FirstEnergy Corp, NEE / NextEra Energy, PCG / PG&E Corp.
Dennis Gartman
***No Disclosures***
Peter Boockvar
***No Disclosures***
Simon Leopold
***No Disclosures***
Joe LaVorgna
***No Disclosures***
Scott Natons
***No Disclosures***
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