Commodity Traders

Commodity Traders: Barron’s noted that SG-listed commodities Co’s, namely Wilmar, Noble & Olam may challenge large long-established Western companies like Archer Daniels Midland Co, as they benefit from their Asia-based homes, where the world's largest populations are eager to secure food supplies….

Note that the Co’s cash flows has been growing by the upper teens. Seperaretly, Daiwa upgrades Olam's TP to $3.72 vs $3.52 as citing that the Queensland flooding will affect Australia’s 2011 cotton harvest negatively around Feb and that the flooding is not in all parts of Queensland, and total damage should also depend on future precipitation…

Seperately, OCBC upgrades Wilmar to Buy from Hold, with $6.48 TP and Kim Eng maintains its Buy Call on Noble, increase TP to $3.00 frm $2.95, citing that recent flooding in Queensland, which has disrupted production should work to Noble’s advantage, as grp’s mining interest, (65%-owned Gloucester Coal) are further south in New South Wales….

Given that Queensland supplies an estimated 30-50% of the world’s coking coal, spot prices can only head north, especially with no respite to the continued heavy raining.