Commodities Super-Cycle Marches Onward Creating Investment Opportunities

LSGI Fund Manager Says Grain Prices Could Move Much Higher in 2011

Dec 08, 2010, 09:25 ET from LSGI Advisors Inc.

DUNCANVILLE, Texas, Dec. 8, 2010 /PRNewswire/ -- "The commodity super-cycle continues to march onward with higher prices seen in the energy, metals, and agricultural sector with no let-up in sight," according to Joseph R. Dancy, Adjunct Professor of Law at Southern Methodist University and manager of the LSGI Venture Fund L.P.

Dancy noted in an interview with James Puplava of the Financial Sense Newshour that global economic growth is fueling demand for commodities, especially from fast-growing Asian countries. Food inflation is already a problem in China, and supply issues due to weather issues are resulting in significantly higher prices for grains. "We could see major increases in grain prices next year as global inventories to use ratios are falling to levels not seen in decades," according to Dancy.

LSGI issued a report on the agricultural sector on December 7, 2010 that discussed:

  • The U.N. report claiming the world is 'dangerously close' to a new food crisis
  • The USDA's new report forecasting major gains in farm income
  • Russian grain supply issues and potential imports next year
  • U.S. agricultural equipment demand jumps again
  • China grain demand and import requirements
  • Long term weather trends and the impact on agriculture
  • The positive investment outlook for smaller companies

"Smaller companies are starting to substantially outperform the market," according to Dancy. "With substantially higher grain prices and near-record farm income companies in the agricultural sector should do very well. This is creating some incredibly attractive  opportunities for investors."

Firms mentioned by LSGI in the report include agricultural equipment retailer Titan Machinery, Inc. (Nasdaq: TITN), Art's Way Manufacturing (Nasdaq: ARTW), Balchem Corporation (Nasdaq: BCPC), and China AgriTech, Inc. (CAGC).

A link to the December 2 Puplava interview and LSGI energy report is located at the firm's website

About LSGI Advisors:

LSGI Advisors Inc. manages the LSGI Venture Fund L.P., a Texas limited partnership. For more information please visit:


LSGI Advisors Inc.

Joseph Dancy, 972-780-1805

214-263-5201 (cell)

SOURCE LSGI Advisors Inc.