When it comes to agricultural commodities, wheat is perhaps one of the most important crops, as this resource is a dietary staple throughout both the emerging market and developed world. Because of this dependence, wheat prices tend to exhibit significant volatility, which can be triggered by a wide array of issues; anything from supply disruptions to extreme weather can easily send the commodity into a tailspin [for more commodity futures news and analysis subscribe to our free newsletter].
Major U.S. equity benchmarks are looking to resume their ascent into uncharted territory following last week’s stretch of choppy trading. Although optimism is high on Wall Street, investors are having to digest mixed data that could encourage more profit taking over the coming sessions; ISM data from May hints of a contraction in the manufacturing sector while better-than-expected motor vehicle sales are resonating well among auto stocks and industrial metals [for more commodity futures news and analysis subscribe to our free newsletter]. Amid the recent pullback on Wall Street, bargain shoppers are on the prowl again in search of trending stocks at attractive levels. As such, below we take a look at three big commodity stocks that are trending higher, but have slipped in the last few trading sessions, thereby offering an attractive opportunity to “buy on the dip.”
While many traders primarily focus on resources like gold or oil, there are plenty of other opportunities in the commodity space. One such opportunity lies in cotton, which can be found in almost every textile product around the world; but as a soft commodity this constant demand does not always translate into consistent returns. The fluffy crop has enjoyed a strong start to 2013, but is well known for its large movements from day to day and for keeping investors on their toes [for more cotton news and analysis subscribe to our free newsletter].
When it comes to agribusiness stocks, there is perhaps no name bigger than Monsanto Company (MON) – the world’s leading producer of the herbicide glyphosate and the second biggest producer of genetically engineered seeds. Headquartered in St. Louis, the firm has grown into an over $55 billion company, with operations spanning across the U.S., Europe, Africa, Brazil, Asia-Pacific, Argentina, Canada and Mexico [for more agricultural news and analysis subscribe to our free newsletter].
For years now, many have been pointing out a developing trend in the U.S. farming industry: the number of farmers continues to stagnate. Though the United States was once dominated by agriculture, the nation has simply grown beyond its once economic staple and put its focus elsewhere. As this happened, farming became less of a lucrative industry, leading to fewer and fewer people who choosing it as a career path. The trend has led many to proclaim an agriculture crisis in the country, but the situation is probably less dire than many paint it [for more agricultural news and analysis subscribe to our free newsletter].
As we enter 2013 investors are faced largely with the same general uncertainty over the future of the U.S. economy that we saw last year. In light of this, a number of commodity investors have turned to dividend stocks to help maintain a sense of security and a steady stream of income for their portfolios. As the years have gone on and emerging markets have continued their exponential growth, the appeal of agriculture stocks has surged, especially for those that pay dividends. Below, we outline three agriculture stocks with strong yields for those looking for solid dividend stock investing ideas [for more agricultural news and analysis subscribe to our free newsletter].
For years, investors have been touting the lucrative opportunities that can be found in the agricultural sector. Legendary investor Jim Rogers is perhaps best known for his love of this industry, as he believes that agricultural prices are still depressed and that the current ‘commodity supercycle’ still has another 10 to 15 years to go before it runs out. And given the insatiable demand from rising Asian nations, as well as rapid population growth in the near future, the winds appear to be at the backs of various agricultural commodities and their producers for years to come. For those who have a bullish outlook on the agricultural industry, we outline five of the biggest agribusiness companies by market cap [for more gold news and analysis subscribe to our free newsletter].
In today’s current market environment, one that is plagued with volatility and offering low rates for those trying to earn a steady income, investors have begun to widely adopt dividend strategies. Not only can dividends help keep a portfolio in line with inflation, but they also add a predictable income stream to a portfolio through cash distributions on a regular basis. But when it comes to commodity investing, dividends rarely overlap. The majority of commodity investments are made via futures contracts or other funds that invest directly in the asset itself, but there are also ways for commodity investors to gain access to their favorite tangible assets while still maintaining a strong income stream [for more dividend news subscribe to our free newsletter].
Cotton is a crop that has been around for centuries and has been important to numerous civilizations throughout history. The crop is most often spun and woven into yarn or textiles to be worn as clothing. In fact, historical evidence suggests that cotton clothing has been around since prehistoric times, and it continues to be an important commodity today. Cotton is the main component of many of our shirts, towels, bed sheets, jeans, socks, underwear, etc. The fluffy commodity is also a popular investment for numerous traders. Cotton has the potential to serve as a useful hedge against inflation, and can also be used for profit during strong economic times, or during times of high demand for raw materials. There are a number of different options to invest in cotton, including futures contracts, stocks of companies engaged in cotton production or planting, and ETFs [see also The Guide To The … See the full story here