Analyz - Of Commodities & Soybeans

Increasing demand from China for commodities have pushed prices of steel, oil, rubber and other soft commodities into the high regions. Commodity prices looks set to remain high until 2008, as China is forecasted to maintain its economic growth in the years leading towards the Summer Olympics in China. One of the key commodities in view is that of Soybeans. China seems to have an insatiable demand for soybeans (in addition to pork) and it is possibly the largest importer of soybeans. One country to have benefited from it is Argentina and Brazil where large orders have come from. However, companies will be expected to benefit from this demand and rising prices of soybean. Noble Group (S$1.410), one of Singapore's largest listed commodities trader will most probably see increase in profits especially so when it deals in various commodities. Another 2 company to watch are China plays like Celestial Nutrifoods (S$0.950) and Pine Agritech (S$1.330). Pine Agritech has nearly doubled in value since Dec 2005 when it was trading at S$0.69 and this could be related to their high tech production of soybean and soybean related products in China catering to one of the largest soybean consumers in the world.