Canola demand exceeding supply

World wide demand for cooking oils is exceeding supply.

Prices are soaring

see

http://www.iht.com/articles/2008/01/...ss/palmoil.php


I came across a wonderful Canadian small cap (micro cap, actually) company that has a partnership with the giant Canadian Ag firm Viterra (VT.TO), to build a canola oil plant in Canada using the small cap's patented extraction process, which is environmentally sound and energy efficient

The company is Bio-Extraction Inc (BXI.V). its traded on the Canadian Ventures exchange, and its soaring

Personally, I don't get involved with stocks that sell for less than $5.
[I know, I'm missing a BIG opportunity.]
That's just part of my being of retirement age.

Still the 'fundy' condition that you highlight — vegetable oils are in short supply — presents trading opportunities well beyond BXI.V
Guess I'll have to figure how I want to deal with that. :?

I usually don't trade the penny stocks either, but I will buy a small amount of one to hold for 6 months or a year.. For me, that's a "buy and hold".. hahaha..

As far as other plays on the cooking oil aspect of things, I really haven't found any yet. There's always ADM.. but they seem to be involved in everything from grain to ethanol to seeds to you name it...

Looks like it's well worth a small position. But i know so few of this market.

Still, great insight there. Deffinatly going to follow it up.

Well, at least part of this is the ethanol question: How many acres of corn do you want to take from food production to produce energy?

[Given that the number of corn acres vary depending on price, the answer depends upon the result of a dynamic model.]

I believe that the 'answer' to the question [which certainly has a de facto resolution in the market place] is not as important as the question itself.

Long term, we will see competition for 'crops' from both food and energy firms.
That competition should provide trading opportunities along the way.