usan says:

Agricultural plays – More folks are touting this sector given its failure to “partake” in the latest run up. Ways to play it are the ETFs like DBA (which Leibovit recently bought) RJA, MOO and other stocks like those mentioned in Ambrose Pritchard’s article, excerpts of which are below along with the link. Would love to know if anyone else is playing in this space.

Food Will Never Be So Cheap Again
By Ambrose Evans-Pritchard

“Wheat prices have tumbled 70pc since 2008 but demand is not going to go away
The world’s grain stocks have dropped from four to 2.6 months cover since 2000, despite two bumper harvests in North America. China’s inventories are at a 30-year low. Asian rice stocks are near danger level.
Yet farm commodities have largely missed out on Bernanke’s reflation rally in metals, oil, and everything else. Dylan Grice from Société Générale sees “bargain basement” prices.
Wheat has crashed 70pc from early 2008. Corn has halved. The “Ags” have mostly drifted sideways over the last six months. This divergence within the commodity family is untenable, given the bio-ethanol linkage to oil.
For investors wishing to rotate out of overstretched rallies – Wall Street’s Transport index and the Russell 2000 broke down last week – this is a rare chance to buy cheap into a story that will dominate the rest of our lives.
…….
You can trade the “Ag” rally by investing in exchange traded funds (ETFs), but this amounts to speculation on food. . . . Or you can invest in the bio-tech, fertiliser, and land services companies that will both make money and help to solve the problem. Monsanto, Syngenta, and Potash are popular, but trade at high price to book values. Golden Agri-Resources, Yara, Agrium, and Bunge are at better multiples.”

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6432538/Food-will-never-be-so-cheap-again.html