Growth in agriculture
"Our core resource positions -- including agriculture -- have had a great month; my indicators suggests these positions are going much higher," says Larry Edeslon in Real Wealth.
"We continue to see bullish sentiment building up in the agriculture sector.
"Many key commodities — from corn and soybeans to wheat and cotton — are being pressured higher from bad weather conditions and shrinking stockpiles.
"Indeed, the bullish news keeps coming in:
- U.S. farmers are expected to harvest 18% less winter wheat (a two-year low) this year after prices plunged from a record high in February. Bad weather has also damaged crops.
- Corn prices, the biggest U.S. crop, recently rose to a four-month high as wet weather limited planting, which will likely reduce crop yields.
- Sugar prices are rising based on speculation that the global production shortfall will reach a 10-year high.
"In my view, the writing is on the wall: Agricultural commodities are primed to rise and your shares of PowerShares DB Agriculture Fund (NYSE: DBA) -- and exchange traded fund investing throughout the agriculture sector -- stands to benefit."
May 29, 2009 | Filed Under Stock Picks
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