We’re Running Out Of Food

World food production must rise 50% by 2030 to meet ever increasing demand; so says a U.N. summit grappling with hunger and civil unrest.

The desire for grainsis climbing at historic rates due in large part to the new demand created by ethanol and other bio-fuels. And with demand significantly outpacing supply … the price has skyrocketed, up 43% this year alone. That’s made staples (especially rice which was cheap a few years ago) all but unaffordable to some of the poorest nations.

I think the UN estimate could be on the low-side, says strategic investor Dennis Gartman. A lot more people will have much higher incomes and will want to eat better. However, I have confidence we can meet the demand.

How would you trade it?

Long-term I think the trend in commodities is from the lower left to the upper right, replies Gartman. I’m bullish on commodities.

However, be careful in the short-term about being outright long. I think some serious issues are coming from lawmakers in Washington. New rules out of Congress could set limits on commodities trading. If they come it could take a dollar out of cornand send oil to $100.

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Trader disclosure: On June 3, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (INTC), (MSFT), (WMT); Najarian Owns (HK), (AAPL), (BHI), (HD), (TSO), (XLF), (XTO); Najarian Owns (LEH) Puts; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (AET), (AAPL), (MO), (MSFT), (SUN), (TSO), (VLO)’ Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM)

Gartman Owns (SDS), (AAPL), (AMR), (DIS), (EWC), (CQB), (CSH); Gartman Is Short (CME), (ICE), (WFC), (BAC), (ING), (XOM); CIBC Gartman Index Owns Corn, Soybeans, Canadian Bonds, Gold; CIBC Gartman Index Owns Natural Gas And Is Short Crude Oil