Commodity Stock in Focus: Monsanto Company (MON)
The agribusiness industry has long been an investor favorite on Wall Street, as these companies provide indirect exposure to some of the most popular commodities on the market. Agricultural products are best known for human consumption, although these commodities are widely used in a number of other applications, making the producers of these products highly appealing [for more commodity news and analysis subscribe to our free newsletter].
Grain Prices Facing Harsh Headwinds
Grains commodities are sitting at lows that have not been seen for approximately four years, creating something of a headache for commodity investors. Corn, soybeans, and wheat have all been getting hit hard this year, as production is on track to set records. In fact, the aforementioned commodities are among the worst performing of the entire space in 2014 [for more commodity news and analysis subscribe to our free newsletter].
The Next Big Industry: Farming Technology
On Wall Street, the agriculture business has long been a popular place for commodity trading. After all, it was with agricultural futures that commodity trading got its start, when farmers originally used futures contracts to offset losses in crop yields. Over the years, the agriculture space has rapidly developed, offering investors various options to cash in on the industry [for more agricultural news and analysis subscribe to our free newsletter].
Monsanto Q1 Earnings Are In: Profits Climb
In the agribusiness space, Monsanto Company (MON) is one of the largest and most popular companies in the industry. It currently is the world’s leading producer of the herbicide glyphosate and the second biggest producer of genetically engineered seeds. And with a market cap of over $61 billion, investors pay close attention to this bellwether, closely following the company’s news and key earnings report [for more agricultural news and analysis subscribe to our free newsletter].
Checking in on the Best Commodities of 2012
While the bulls reigned supreme on Wall Street in 2013, bearish pressures kept a lid on commodity prices throughout the entire year as investor rotated out of safe havens and jumped into cyclical equities. Despite the improving economic outlook on the home front, as evidenced by the Federal Reserve’s efforts to start reducing stimulus, demand for natural resources remains lackluster. Worries over China’s slowdown and unfavorable supply conditions remain the key headwinds that will most likely continue to put downward pressures on commodity prices heading into the new year [for more commodity news and analysis subscribe to our free newsletter].
