Think you're bullish?...

Somebody needs to turn the hose on the boys on Wall Street pushing commodity funds. I think their brains are overheating.

Rising wealth from Shanghai to Sao Paulo is leading to better diets and straining corn and soybean supplies just as record energy prices boost sales of biofuels. Even after rising 17 percent in 2007, corn costs about $2 a bushel after adjusting for inflation, compared with a $7.80 high in 1974.

``We are in the early stages of a rally that could last 20 years'' in agriculture, said Christopher Wyke, product manager at London-based Schroders Plc, which manages $3.5 billion in commodities and is buying more corn and soybean contracts while reducing energy holdings. ``Prices are historically cheap.''

Not since the Soviet Union harvest failures of the 1970s have food prices risen so quickly. European Central Bank President Jean-Claude Trichet said Dec. 19 that the region faced a ``more protracted'' period of elevated inflation than expected because of food and oil prices. [More]

I'm always a teensy bit skeptical of investment bankers predicting my future. After all, Goldman-Sachs needs to be selling something and the other stuff they got isn't looking so good right now.

Still, $14 beans?...