Dipping into Guacamole
by Mr Juggles
Avocado. A crucial good for delicious sushi rolls, salads, and the king of mole, guacamole. Avocado crops were partially destroyed by the San Diego fires.
More than 20,000 acres of avocado trees in northern San Diego County have been lost, at least a third of the state’s crop, with another 15,000 acres threatened by flames, emergency officials said.
State farmers usually plant about 62,000 acres of avocados, and the industry is worth about $276 million annually, said state Department of Agriculture spokesman Jay Van Rein.
Recommendation: The hysteria may be dying down, but we think it’s still a great time to go long Avocado. For those who don’t want exposure to the latin snacks market, it would be appropriate to hedge avocado exposure (guacamole) with a short salsa position. We advise buying avocados on, or in, any dip.
Hat tip to reader Terminal Value
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Peak salsa interest occurred over a decade ago. The time to short it passed long ago.
GEORGE: “Why don’t they have salsa on the table?”
JERRY: “What do you need salsa for?”
GEORGE: “Salsa is now the number one condiment in America.”
JERRY: “You know why? Because people like to say “salsa.” “Excuse me, do you have any salsa?” “We need more salsa.” “Where is the salsa? No salsa?”
NEW YORK CITY!?!?
Get a rope.
big ups hilt, respek.
No worries, you can make industrial guacamole with less than 2% avocado content (see Kraft’s “guacamole”)