The USDA says that by the end of this year’s harvest, global inventories for corn, wheat and other grains will cover only 45 days of consumption. That’s the lowest level since the government began keeping records in 1960 -- almost half a century ago.
As with any commodity, inventories of grains fluctuate. But the average since 1960 has been about 79 days’ supply. Today, it’s about 49 days. Yet the “big money” still isn’t listening. "I had 70 meetings with institutional investors and not one had seen the USDA data," says Don Coxe, portfolio strategist at BMO Financial Group in Chicago.
“The fact that Wall Street still isn’t clued in to what’s happening,” says Mayer, “shows that you can still get ahead of the game by investing in companies that should do well in this period of agflation.”
Which businesses will do well? “Fertilizer, crop protection and farm equipment. Also, the value of farmland should continue to rise. More farming also means more water and energy use -- good news for owners of the relevant commodities.”
As with any commodity, inventories of grains fluctuate. But the average since 1960 has been about 79 days’ supply. Today, it’s about 49 days. Yet the “big money” still isn’t listening. "I had 70 meetings with institutional investors and not one had seen the USDA data," says Don Coxe, portfolio strategist at BMO Financial Group in Chicago.
“The fact that Wall Street still isn’t clued in to what’s happening,” says Mayer, “shows that you can still get ahead of the game by investing in companies that should do well in this period of agflation.”
Which businesses will do well? “Fertilizer, crop protection and farm equipment. Also, the value of farmland should continue to rise. More farming also means more water and energy use -- good news for owners of the relevant commodities.”
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