As long predicted [May 27: Update on Corn and Livestock] the chickens (couldn’t resist) are coming home to roost…. as always we are early and you never know when a thesis will hit critical mass. But as I’ve been repeating I think “oil” will be replaced with “food” as the inflation of choice for the news channels to stress over later this year and into early 09.

I will say the action this week in iPath DJ Livestock ETN (COW) was very encouraging. [Apr 23: Initiating iPath DJ Livestock ETN (COW) - Make up your own Farm Animal Headline]

I’ve mentioned this name, iPath DJ Livestock ETN (COW) recently as a play on the twin tower effects of (a) governmental ineptitude (ethanol boondoggle) and (b) Fed induced grand larceny against savers and lower/middle class (inflation). While I could see grains having a …

I’m long 5,000 bushels of corn in the futures market. I bought the contract at $6.22 (a bushel), near corn’s record high price.

Why? Because I’m expecting the price of corn to more than double in the next 18 months, to well over $12 a bushel. And I’ll be adding more corn to my portfolio when I see the next buy point.

I plan on buying soybean futures, too. Currently trading at just under $13 a bushel, I expect soybean prices to eventually climb to more than $25 a bushel, doubling in price.

And that’s just the beginning!

Other foods on my radar screen include …

Cocoa, which has enormous upside potential as hundreds of millions in …