Dec 02, 2022 17:45
Collecting and distributing crops, livestock, sugar, and soybeans are all part of agriculture, and so are the manufacturing of farming equipment, processed foods, and fertilizers.
Several extremely affluent people have recently expressed curiosity about farming. Bill Gates, who is worth an estimated $29 billion, is said to have purchased farmland in recent years. Cereals play an important role in international trade, but acquiring farmland is difficult for most investors. This is why we're going to take a look at eleven wheat stocks.
One of the most recognizable names in American agriculture is Deere & Company, better known as John Deere, and the Company also produces wheat sowing and harvesting equipment.
In recent years, John Deere has spent money on agricultural automation systems. Towards the beginning of 2022, it revealed a completely autonomous tractor that could carry out predetermined tasks while the farmer tracked its progress remotely. Adding automation to boost crop efficiency may become vital in the next decades, given the rising prices of wheat and other agricultural items and the need to feed a growing global population.
The Archer Daniels Midland Company is a Fortune 500 company and a global market leader in the food processing industry. The business was established in Minneapolis in 1902. Since then, he has managed a food processing plant, a grain elevator, and a system for transporting cereal grains like oats, milo, wheat, and barley. The transportation system gathers raw materials and processes, stores, and delivers them to key users.
The Company's three business divisions are Carbohydrate Solutions, Ag Services & Oilseeds, and Nutrition. The Company expects to have priced its first green bond to support its environmental, social, and governance goals by February 2022. Following the Company's Sustainable Financing Framework, the net proceeds from the offering will be utilized to finance or refinance such projects.
The New York Stock Exchange symbol for Archer Daniels Midland Company shares is ADM. The initial public offering price for the Company was $42.39. At the current price of $95.71, the Company's market cap is $53.19 billion. Archer Daniels Midland Company has maintained a solid performance across all major measures over the previous four years. This includes a gross margin of 8.51%, a net profit margin of 2.70%, an operating margin of 5%, and a return on investment of 6.60%.
Seaboard is another company that plays a role in the food supply chain by exporting goods from the agricultural sector. Its impacts range from handling wheat and other grains to dealing with various other materials.
This worldwide agricultural stock (now over $4,000 per share) is notorious for its high valuation because the Company has never permitted a stock split. Seaboard has maintained constant revenue growth over several years, and its stock price has risen steadily for investors.
The Bunge Limited agricultural and food corporation was founded in 1818 and operates out of its headquarters in St. Louis, Missouri. Oilseeds, cereals, and other components are purchased, processed, and distributed by the Company. The company deals not only with agriculture but also has four other departments that deal with edible oil products, milling goods, sugar, bioenergy, and fertilizers.
Investors would be well to recall that Bunge is involved in more than just the trading of wheat and that this year's success of the Company's stock can be attributed partly to the diversification of its business. In its 360 port terminals, grain elevators, processing plants for oilseeds, packaging plants for food and ingredients, and other facilities around the world, Bunge employs over 31,000 people. These facilities all take advantage of the Company's eco-friendly opportunities and solutions.
Bunge has been doing a lot to meet the need for renewable fuels and develop low-carbon fuels, including announcing a joint venture with Chevron in September 2021. Furthermore, in November 2021, the Company planned to set up a sustainable production factory in the Port of Amsterdam, with completion expected in 2024.
The stock of Bunge is represented on the New York Stock Exchange by the symbol BG. The firm doubled in value from its IPO price of $60.10 to its current trading price of $120.06, or $16.8 billion. The following are some important signs that may be discussed in light of the past four years: Return on investment for Bunge was 3.53%, while the Company's operating margin was 6.84%, and its gross profit margin was 8.92%.
Some of the many asset groups that CME Group Inc. supports trade-in are agricultural goods, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies. The Company offers traders access to a market news feed and an educational website, among other services.
CME Group Inc. is represented in the open market by the ticker symbol "CME" on the NASDAQ. The initial public offering price for shares was $78.93. Its market valuation has climbed from $39.8 billion to $86.2 billion, or $242.14, nearly tripling in value. The Company has achieved a gross margin of 79.39%, a net profit margin of 59.75%, an operating margin of 56.40%, and a return on investment of 9.12% over the past four years.
The Andersons is a supplementary supplier in the agricultural industry. It acquires and disposes vital supplies while manufacturing renewable fuels like corn-based ethanol. Inflation has led to growth in the plant nutrition business since the outbreak began.
Like the stock market, the Andersons' commodity industry has been highly cyclical. The Company has maintained dividend payments for a long period even though rising sales due to inflation do not necessarily result in higher profits.
Customers across the Americas, Canada, Latin America, Asia Pacific, Europe, the Middle East, and Africa all benefit from Corteva, Inc.'s central location in Wilmington, Delaware, USA. In 2018, the Company officially launched the Corteva AgriscienceTM brand, dating back to 1897. Furthermore, it was a DowDuPont subsidiary up until June of this year, and it was officially incorporated as a separate entity in June 2019.
Improved food quality can be achieved by implementing technologies that increase crop and seed resistance to environmental stresses such as disease, insect pests, and weeds. The goal of Corteva's collaboration with farmers all around the world is to create a sustainable agriculture system that improves lives while also preserving the planet.
Its NYSE ticker symbol is "CTVA," and Corteva is a company. After beginning trading in 2020 at a share price of $37.08 with a market size of $43.42 billion, the Company's stock has nearly quadrupled to its current price of $60.43 and a market worth of $43.42 billion. The Company has a gross margin of 36.67%, a net profit margin of -4.38%, an operating margin of 8.59%, and a return on investment of 0.62% based on the four most important indicators during the past four years.
The Company's headquarters and original site, Tampa, Florida, were established in 2004. It produces agricultural phosphates and potash through its subsidiaries and has a global presence. The Company is the largest producer of potash and phosphate fertilizers in the United States, and it also gathers urea for use in fertilizers through numerous international distribution networks.
Mosaic is a global player in the crop nutrition industry, with operations spanning from resource extraction through manufacturing crop nutrients, feeds, and industrial commodities. Over 12,560 people are currently working in chemical agriculture.
Mosaic's stock ticker symbol on the New York Stock Exchange is MOS. Shares went on sale at $66.70 each and now trade at $75.37, giving the Company a market valuation of $27.22 billion. The Company has a 26.04% gross margin, a 2.47% net profit margin, a 22.56% operating margin, and a 2.23% return on investment, according to the key indicators for the past four years.
Ingredients obtained from both edible and inedible bio-nutrients are used in the products made by Darling Ingredients, Inc. The process moves from the ingredients used to make feed and food to those used to create fuel. Fats, proteins, discarded cooking oil, grease trap residue, food residuals, Rothsay components, and specialty additives are all classified as Feed Products. Gelatin, natural casings, animal by-products, and other specialist materials can all be found under the Food Ingredients category. Services associated with biofuels and bioenergy are part of the Fuel Ingredients market. The Company's headquarters have been in Irving, Texas, since its inception in 1882.
In 2002, Adecoagro was founded with Luxembourg as its base of operations. The Company operates agricultural businesses across several nations in South America, including Brazil, Argentina, and Uruguay. Agriculture, dairy, sugar, land conversion, ethanol, and energy are only a few of the companies it is involved in.
The Company held 241 MW of installed cogeneration capacity and 220,186 ha of land in Argentina, Brazil, and Uruguay by the end of 2020. It is currently involved in the agricultural and milling sectors, where it employs 8,716 people.
Its market value has increased from its initial $7.87 million to its current $12.37 million, for a total of $1.43 billion. The gross margin was 13.28%, the net profit margin was -0.59%, the operating margin was -4.16%, and the return on investment was -0.16%, according to the key performance metrics for the previous four years.
Clean energy, fertilizers, pollution control, and other industrial applications are only some of the many uses for the hydrogen and nitrogen molecules manufactured by CF Industries Holdings, Inc. The Company has been around since 1946, when it was established in Deerfield, Illinois.
The Company's primary product is anhydrous ammonia, which consists of 82% nitrogen and 18% hydrogen. Other products include ammonia, granular urea, UAN, and AN (ammonia). It participates in the agricultural chemicals market and employs three thousand people.
CF Industries trades under the symbol CF at the New York Stock Exchange. With a market size of $22.19 billion, the price of a single share of this Company's stock has increased from $59.33 in 2015 to the current price of $109.69. Gross margin of 33.91 percent, net profit margin of 9.53 percent, operating margin of 30.50 percent, and return on investment of 6.64 percent are also among the Company's key performance indicators over the previous four years.
Grain bins, high-horsepower tractors, seed processing systems, ventilation, and water systems are just some products that AGCO Corporation, based in the United States, manufactures and distributes to farmers everywhere. Established in 1990 with headquarters in Duluth, Georgia, the Company now conducts operations and international commerce on a global scale.
When it comes to creating and marketing innovative solutions for the agricultural sector, GCO is unrivaled. To address the most important issues in the trucking and construction industries, more than 20,000 people in more than 35 countries work tirelessly to find innovative solutions.
AGCO is the ticker symbol for AGCO on the New York Stock Exchange. With a market worth of $10.23 billion, the Company has seen its share price rise from $51.33 in 2011 to the current $137.67. Over the past four years, the Company has generated a 22.52% gross margin, 3.88% net profit margin, 9.10% operating margin, and 8.33% return on investment.
When it comes to producing potash fertilizers, no one does it better than the British firm Verde AgriTech. Potassium, sulfur, and magnesium are only some of the minerals used in its fertilizers. The Company also has an over-the-counter (OTC) market in the United States, where its stock trades under the symbol AMHPF. Midway through May, the first-quarter financial figures for the fiscal year 2022, which concluded on March 31, 2022, were made public. There was a dramatic reversal of fortunes from the previous quarter, when a net loss of CA$1.8 million was incurred, to the current quarter, when a net profit of CA$3.0 million was recorded. Revenue climbed roughly 14-fold. Since Verde AgriTech's EPS was negative in the prior-year quarter but positive in the most recent quarter, the following table cannot be used to calculate EPS growth.
Canadian-based agricultural services and product supplier Nutrien Ltd. Retail outlets typically carry a variety of fertilizers for farmers, including potash, nitrogen, and phosphate. Nutrien's stock ticker symbol on the New York Stock Exchange is NTR (NYSE). The company released results for the first quarter of the fiscal year 2022 on March 31 and May 1. Due to a 64.4% increase in sales, net income for the current quarter grew by more than tenfold.
As we have shown throughout this article, this commodity has immense historical significance and profit potential because of its nutritious worth and great global demand.
To avoid any misunderstandings, we will discuss the specifics of how eToro, our recommended broker, rates when it comes to wheat investments.
This kind of grain's hardiness and ease of growth suggest that it could sustain the industry's anticipated global demand growth. It requires less time and effort to produce than meals like rice. As a result, wheat has a better chance of replacing maize as the most widely grown cereal crop in the world's developing economies.
A shift in focus to biofuel production could lead to a wheat shortage and price increases. The ongoing conflict between Russia and Ukraine, the world's two largest wheat suppliers, will drive grain prices and spur the creation of new businesses to meet rising demand.
Several of the following continue to make agricultural commodities a promising financial bet: The best-performing exchange-traded funds (ETFs) over the past year have been corn, wheat, and RJA; their main holdings are futures contracts for wheat, soybeans, and maize, demonstrating that agricultural commodities have outperformed the broader market.
The graph shows that the companies whose wheat stock we are evaluating are highly profitable and have a sizable market capitalization, both of which suggest that wheat prices will continue to climb. The price per pound of wheat doubled from 2019's $423 to 2022's $1,093 and 2023's $1,208.06 over that span.
As inflation rises, the cost of wheat and other basic goods typically rises. Since the cost of living rises when money loses its purchasing power over time, buying wheat when inflation rates rise is a sensible approach to "hedge" against inflation.
Inflation, especially sudden and drastic inflation, is favorable for wheat prices because it drives up the cost of living and producing products and services.
Wheat is a great way to diversify a portfolio and include a widely used commodity even though many investors prefer equities, bonds, and shares. You can increase your portfolio's diversification and stability by purchasing wheat stocks.
The rising cost of grains and other foodstuffs presents an enticing opportunity for firms to enter this market. However, proceed with caution. The volatile nature of commodity pricing makes it difficult to predict the success or failure of businesses dealing with these products. Having minimal to no exposure to grains in one's portfolio could be prudent, given the widespread fear about inflation.