Thread: Canola demand exceeding supply

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  1. #1

    Default 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
  2. #2

    Default

    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. :?
  3. #3

    Default

    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...
  4. #4

    Default

    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.
  5. #5
    Aidanboog
    Guest

    Default

    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.

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