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Asian food stocks worth buying: Deutsche Bank

Asian food stocks worth buying: Deutsche Bank
PTI
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First Published: Wed, Aug 29 2007. 12 45 PM IST
Updated: Wed, Aug 29 2007. 12 45 PM IST
Hong Kong: Asian food producers’ shares are likely to outperform as rising wealth in China and India, home to a third of the world’s population, boosts demand for cattle and grains to feed them, Deutsche Bank says.
“At the end of the day, there are more mouths to feed in the emerging markets than anywhere else,” Mark Jolley, Deutsche Bank’s Hong Kong-based Asian equity strategies said.
“Strong and sustained per capita income growth make agricultural stocks the ultimate play.”
Rampant economic growth in China and India has already helped push up copper prices by five times in as many years and more than double the cost of a barrel of oil. Food prices are set to catch up as the boom translates into rising wealth and improving diets, Jolley said on 29 August.
“All the industrial commodity prices, whether it’s zinc, or nickel, or copper, or oil, all have gone up very dramatically,” said Marc Faber at Hong Kong-based Marc Faber Ltd. “I made the case to buy agricultural commodities because they hadn’t moved.”
Faber, who predicted the US stock market crash of 1987, owns agricultural land and plantation stocks in Indonesia, Thailand and Malaysia.
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First Published: Wed, Aug 29 2007. 12 45 PM IST