Take a look at [[EWM]], which is an ETF representing Malaysia. I’ll have you know, Malaysia is the biggest producer and exporter of palm oil in the world.
The primary driver for palm oil these days is for energy needs. It is used as a biofuel and is deemed a “clean fuel” by all the greenies.
Last year, Malaysia’s economy ripped higher at a 6.3% clip. They do not expect to slow much (5.6%), during 2008. The risk, of course, is slowing growth in the U.S., who is Malaysia’s biggest consumer of manufactured goods.
If you’re looking for a direct play on the burgeoning demand of palm oil, EWM is the way to go. Thus far, I have no position and have been waiting for a meaningful pullback to get in.If you enjoy the content at iBankCoin, please follow us on Twitter