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Betting the farm on agriculture stocks

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June 23, 2008 11:06 am

With food prices surging, is now still a good time to invest in agriculture companies? (Back to story)

Food is an essential commodity for life, like water and air, so it is not likely that the voters and politicians will let investors corner the market; we’ll just take it back when it gets too expensive for the average citizen to afford.

On the other hand, the stocks trade freely between willing buyers and sellers, and the voters and politicians couldn’t care less. These stocks will be very volatile. Personally, I think it’s too late too buy these stocks after their big run-ups. And, if you own them, sell half to take some winnings off the table.

Posted By Mike, Las Vegas, NV: June 27, 2008 3:18 pm

I will go up but not at the unprecedented rate we have seen recently. Read the 2008 Agri-Outlook Report for a full answer.
http://www.agri-outlook.org/dataoecd/54/15/40715381.pdf

Posted By Patrick, Charleston, SC: June 24, 2008 3:20 pm

Food prices will continue to rise.

Agricultural stocks on the other hand will probably not fair so good in the long run.

The population put up with speculators and stock traders sucking a huge amount of money out of the tech industry. And they had themselves convinced that a wild run to the sky with housing prices was a good thing until the bubble broke. Even all the screaming and whining over the excess we pay for fuel to fund non-productive money for so-called investors in oil wont get past whining and crying.

Food, on the other hand, people get kinda testy about. When people start having a hard time feeding their families they start yelling at their governments in serious ways.

Not to mention that sucking non-productive money out of food is positively immoral.

If “investors” insist on driving up already raising food prices even more for the sake of easy money, the sky will fall on their heads.

How about try this – build something for your money.

oh, silly me. I forgot, we are in a “new” economy. Money for nothing and your chicks for free.

Posted By Sybil, Santa Rosa, CA: June 23, 2008 8:30 pm

Due to the growing middle class in Asian countries, the demand for better diets is just beginning. We are only seeing the early stages of this cycle as these countries switch to higher protein diets and unlike the tech stocks of yesterday these companies have real profits and tangible assets.

Posted By Adrian, Caledon, Ontario: June 23, 2008 3:49 pm

Yes, the speculators will be idiots again and bet unreasonably high, which will in turn shoot themselves in the foot when they go to the grocery store later.

Posted By T Linnell, San Diego, CA: June 23, 2008 12:33 pm

Yes. I think ag products will continue to move higher. Especially in the face of the midwest flooding, the salmonella-tomato scare, as well as just market pressure.

Posted By Jeff, Louisville, KY: June 23, 2008 12:31 pm
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