”Even if we have a slowdown in growth – that would weigh more heavily upon copper, steel and energy. But it won’t weigh upon what what people need every day - which is food. And wheat is still the dominant feed crop of the world.”
Of course that leads to the obvious – what’s the trade?
Gartman tells us companies like Panera may find it harder to make money due to higher input costs. And he says on the other side of the coin, fertilizer companies such as CF Industries should benefit. “You need fertilizer for the corn crop.”
Or if you want to play grains directly he suggests looking at two ETFs, DBA or RJA. “They provide a reasonable facsimile of a long position in all the grains.”
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Trader disclosure: On May 27, 2011, the 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 (AAPL); Pete Najarian owns (MOS); Pete Najarian owns (HPQ); Pete Najarian owns (MS); Pete Najarian owns (TCK); Pete Najarian owns (VLO); Pete Najarian owns (RSX); Pete Najarian owns (TEVA); Cortes owns (SO); Cortes owns (EXC); Cortes owns (KFT); Cortes owns (K); Cortes owns (WMT); Cortes is short Nikkei; Cortes is short EEM vs. S&P long; Cortes is short AUD; Cortes is long the EUR/JPY cross; Cortes is short (CAT); Cortes is short (DE); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasos owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)
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