Agriculture stock plays

Discussion in 'Trading' started by drukes1234, Nov 23, 2006.

  1. What are some stocks to play if you believe Soybeans and Corn will continue their recent rallies?

  2. (1) If you're so bullish on the grains, you should focus on trading them instead of being distracted with ag-based companies. (2) Generally, a bull market in grains produces declining profit margins for grain-reliant companies because they tend to keep their finished-goods prices steady and absorb the increased grain price out of their own pocket. (3) During a sustained bear market in grains, grain processors' profit margins widen out. That's a better time to buy those stocks.