you're one of the few on here who have recognised the Agri-boom.
What is particularly interesting, is that the last time the price of Wheat went up to $7.50 10 years ago it spiked and fell fast. This time round, it has got up and stayed up there.
The question is: how to profit from this.
I'd appreciate your thoughts:
In Australia our choices are limited: IPL, NUF - fertilizer, blue chip. MAK - fertilizer, spec. WOW - If food prices goes up, and profits margins stay the same percentage-wise, then $ profits must also increase. I once joked - that if you want to profit from increased farm productivity - buy shares in Coles and Woolies - because they put they're the ones putting the screws on the farmers.
GNC - Here's my thinking: Last years drought will mean that GrainCorp don't have much volume of grain. This year, I think that El-Nina along with high prices will lead to big volumes and profits.
I can't help but think that the best way to to profit from the Agriboom is outside Australia, where there may be more specialized funds. Direct exposure to Wheat growers is what I am looking for.
