Agriculture Stocks Belong in Long Term Portfolios

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February 22nd, 2008

February 20, 2008 - James B. Stewart, Wall Street Journal, writes that Agricultural Stocks Belong In Long Term Portfolios.

Here are a few excerpts:

What’s remarkable about soaring agriculture prices is that corn, oats, barley and wheat aren’t finite resources, like oil or copper. Fortunately for the world’s ever-growing population, food is a renewable resource. Yet it isn’t inexhaustible. U.S. stockpiles of many grains are at record lows, according to some reports. A more affluent world population is clamoring for better-quality foods, starting with wheat, a natural high-protein grain and the essential raw material in bread. The ethanol boom may have peaked, but the biofuel movement has further super-charged demand.

Feed Prices

You thought $3-a-gallon gas was bad? On a recent visit to my neighborhood market, I saw loaves of bread fetching upward of $4, a small box of granola was $5, and a pound of beef filet was $27.99. Get ready for refrigerator shock.

There isn’t much consumers can do about it, short of going on a crash diet. But you can ease the pain by sharing in some of the profits that are flowing into the agricultural sector.

Here are some agriculture related stocks and ETFs:

Stocks Ticker 12-Month return
     
AG Growth Income Fund AFN.UN-T  
Agrium AGU-T  
CNH Global CNH-N  
Deere & Co. DE-N  
Monsanto MON-N  
Mosaic MOS-N  
Potash Corp. POT-T  
Saskatchewan Wheat Pool VT-T  
Terra Nitrogen TNH-N  
     
ETFs Ticker  
     
Claymore Global Agriculture ETF COW-T  
PowerShares DB Agriculture Fund DBA-A  
Market Vectors Agribusiness ETF MOO-A  

 

Chart for AGRIUM INC COM NPV (AGU.TO)

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