May 8, 2008
The fundamentals supporting further price increases within grains, or at worst, no immediate collapse in prices, due to supply/demand imbalances would still seem to be intact.
As high as the valuations are in POT, and I would agree that they are overvalued, the momentum is quite likely to remain, at least until the fundamentals start to indicate that the supply/demand curve is flattening, or falling.
It would be advantageous to actually have the data that describes overall growth [shrinkage] in aggregate world supply so that could be compared to the falling inventories.
However, it remains a fact that POT’s product is required for increasing land yields. With increasing use of marginal land, this trend can only be reinforced.

