What stocks will most benefit from the corn price rise , besides ADM ?

Question

Is there an ETF for corn ?

Answer 1

I am actually somewhat dubious that ADM will benefit. If their raw materials is more costly, they may actually suffer severly. I had been thinking about this very question the last few days (I am kind of slow on the uptake). Maybe look to Deere. If farmers make more money (and they will be the ones who will benefit the most), then they are likely to go shopping for more machinery. Also look for farm prices in the corn belt to skyrocket. That is what happened by in the mid 70's when Nixon sold all the soybeans to Russia and beans went to $13 a bushel.

Of course, Deere as already been jumped on by the more astute investors. There is however an old saying among the Wall Street bunch. "A trend in motion tends to stay in motion" I think they derived that from Mr. Newton.

If you can find 640 acres in Illinois at a reasonable price with a yield of 240 bushels an acre. Jump on it.

Answer 2

Here in the land of the tall corn I can tell you that this high price $4.00 for corn is not really helping farmers that much. The costs to feed livestock has doubled and cattle prices are at $100 per 100 pounds which was $65 on $2.00 corn ADM's profits are getting squeezed, and we now have grocery prices going through the roof. So these $ 4.00 prices are good and bad . note Soy bean acres planted will be dropping by about 20%, this may be your commodity to watch.

Answer 3

You can go at it a couple of ways: if corn is going up, more farmers will be buying more fertilizer, equipment,etc...so you go with TNH ( fertilizer) or DE ( farm equip.) or CTB( tires for that equip) or better seed: MON... another fertilizer: SMG
Or you can go with the " agricultural" ETF...DBA
Just some thoughts...

Answer 4

DuPont (DD), Monsanto (MON) and Bayer (BAY) all have biochemical divisions working on engineering corn (and other crops) seeds to get move fuel out of them.