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Halftime: Pros' Best Trades on Commodity Bull Market

Gold hit record highs for a fourth day in a row on Tuesday, as fresh concern over the debt burdens of several euro zone member countries prompted safe-haven buying.

In addition, demand from China will continue to push gold higher, said Brian Kelly, founder of Kanundrum Capital. He's bullish on the precious metal.

Meanwhile, silver hit its highest level since March 1980. In the options market, optionMONSTER.com's Pete Najarian said there's been tremendous activity in the Silver exchange-traded fund. More than 300,000 contracts changed hands in just the first few hours of trading. But with more puts being bought than calls, Najarian said investors are either hedging or speculating silver's due for a pullback after its 56 percent move to the upside this quarter.

Palladium also rallied for a fifth day and reached its highest level since April 2001. Platinum rose to prices not seen since July 2008.

If just looking to get into the metals trade, Trutina Financial's Patty Edwards recommends looking at palladium or platinum. In addition to being used in jewelry, Edwards likes that these metals have industrial use.

Elsewhere in the commodity space, oil surged to a 2-year high. With jet fuel also on the rise, author Stephen Weiss suggests looking at the cruise ships, being as they're most hedged to increased fuel costs. He didn't, however, suggest any name in particular.

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TOPPING THE TAPE: AG

A crop report from the US Department of Agriculture showing tighter supplies and higher demand sent the price of soybeans, wheat and corn to new highs Tuesday.

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Higher prices will hurt meat processors, which use said crops to feed their pigs and cattle, said Kelly. They'll likely butcher their cattle earlier than normal because it costs too much to continue raising them, he explained. Kelly thinks that'll boost supply in the short-term, but create a shortage in the long-term. Ultimately, he thinks a company like Tyson Foods would be a good play on this news.

Kelly also likes Diana Shipping , which ships grain to China.

Speaking of shipping, Najarian still likes the rails and Canadian National Railway in particular. Looking at the demand, he thinks there's still demand to the upside.

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CHART OF THE DAY

Netflix is giving more business to Level 3 and Limelight instead of Akamai Technologies, according to several reports Tuesday.

If Akamai were to lose Netflix's business, Najarian thinks AKAM would drop to around $46 a share. At that point, Najarian said he'd buy AKAM. He remains bullish on the company overall, but said he needs that pullback to buy the name.

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CALL TO THE FLOOR

After having reported positive earnings results Monday, Silver Wheaton CEO Peter Barnes spoke with the "Fast Money" desk. He also discussed the hot silver trade and more. Watch the video to see the interview.

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CALL THE CLOSE

Weiss thinks the market could end lower Monday. Looking at the volatility index, Najarian agreed.

Kelly, on the other hand, likes the market and remains a buyer.

Edwards is buying Kinder Morgan Energy Partners .

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Trader disclosure: On November 9, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (CNI) and (YHOO). Pete Najarian owns (ECA) call spreads. Pete Najarian owns (GDXJ) and long call spreads. Pete Najarian owns (JNPR) calls. Stephen Weiss owns (SWC), (UAL), (DVN), (HK), (UPL), (COP) and (UXG).

BRIAN KELLY
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TD)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (FCX)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (EWH)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (MOT)
Accounts managed by Kanundrum Capital own (HBC)
Accounts managed by Kanundrum Capital own (SWC)
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital own (DSX)
Accounts managed by Kanundrum Capital own (FRO)
Accounts managed by Kanundrum Capital own Euros
Accounts managed by Kanundrum Capital are short Japanese Yen

PATTY EDWARDS
Edwards owns (CSCO) for clients
Edwards owns (CVX) for clients
Edwards owns (GOOG) for clients
Edwards owns (MOT) for clients
Edwards owns (NEM) for clients
Edwards owns (SLW) for clients
Edwards owns (SYT) for clients
Edwards owns (XOM) for clients
Edwards owns (PGM) for clients
Edwards owns (GLD) for clients

SHAW WU
Kaufman Bros. makes a market in (RIMM), (AAPL), (GOOG).

CNBC.com with wires. Reuters contributed to this report.

Symbol
Price
 
Change
%Change
AKAM
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CGYV
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DSX
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KMP
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LVLT
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NFLX
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SLV
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TSN
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