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Trading The Globe: The End Of Cheap Eats

Thursday, 18 Nov 2010 | 5:45 PM ET

Think there’s no such thing as a free lunch? You may be right. David Riedel of Riedel Research thinks the era of cheap eats is over.

Riedel believes that food inflation lies on the horizon; with the big culprit being wheat. Prices climbed sharply after Russia cut back on wheat exports.

Trading the Globe: End of Cheap Eats
Growing food inflation is fueled by rising young populations in emerging markets, like Argentina, says David Riedel, Riedel Research Group.

Looking at the chart since July you can see the surge.

If you’re looking for a trade, Riedel has an ‘under the radar’ idea.

He tells the desk that investors often overlook Argentina’s influence on the wheat market and as a result he suggest a great way to play it is long Buenos Aires based Banco Macro (which trades on the NYSE.)

"It’s the fourth largest bank in Argentina and it mostly lends to farmers," he explains. "They provide capital to small and medium size farmers across Argentina that are benefiting from higher wheat prices."

Get all the details. Watch the video now!





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Trader disclosure: On November 18, 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; Terranova owns (UPL), (C), (PEP), (VRTS), (OXY), (GS), (POT), (AAPL), (ORCL), (MCD), (NKE), (IBM); Finerman owns (AAPL); Finerman’s firm owns (GM); Finerman owns (DYN); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long (GM); Finerman's Firm Is Long (GOOG); Finerman's Firm Is Short (IJR); Finerman's Firm Is Long (JPM) ; Finerman's Firm Is Long Russell Puts; Finerman's Firm Is Long S&P Puts ; Finerman's Firm Is Long (PDE) Call Spreads; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Jon Najarian is Long (BKE); Jon Najarian owns (COP) short calls; Jon Najarian owns (CRM) short calls; Jon Najarian owns (DRYS) short calls; Jon Najarian owns (F) short calls; Jon Najarian owns (FIRE) short calls; Jon Najarian owns (FFIV) short calls; Jon Najarian owns (FSLR) short calls; Jon Najarian owns (DLTR) short calls; Jon Najarian owns (DG) short calls; Jon Najarian owns (WMT) short calls; Jon Najarian owns (FCX) short calls; Jon Najarian owns (FCX) call spreads; Jon Najarian owns (GOOG) call spreads; Jon Najarian owns (LTD) call spreads; Jon Najarian owns (FIRE) call spreads; Jon Najarian owns (GT) call spreads; Jon Najarian owns (GM) converts

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For Anthony Scaramucci
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