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Commodities Investing: The truth behind the agriculture supercycle

Posted February 27, 2008

"The world population is growing and the amount of available farmland remains virtually unchanged. The end result is less farmland per person." — Andrew Mickey

by Andrew Mickey

Baltimore – (TFN):  Sometimes it really is just that simple.

Why have agriculture stocks outperformed the overall market? Wheat, corn and soybean prices are all more than triple their long-run averages, and there isn’t much we can do about this problem.

The world population is growing and the amount of available farmland remains virtually unchanged. The end result is less farmland per person.

But people still have to eat. Getting more and more production out of each last square inch of farmland is critical. The only commercially viable solution is to use more fertilizer.

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Andrew Mickey is a regular contributor to Taipan Daily, your FREE resource for late-breaking investment opportunities to help you beat Wall Street to the profits.

Filled with investment analysis and insight for every sector (from blue chips to small caps… from options to ETFs… from emerging markets to the tech sector), Taipan Daily delivers just the right blend of safe opportunities with the fast-moving plays, so you have an insider's edge over the Street… and other investors.

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Commodities Investing: Agriculture will continue to boom  

Fertilizer consumption is growing at record pace just to keep crop production in line with demand. But if high crop prices are any proof, it’s just not enough. As a result, the biggest and best opportunities will crop up (sorry about that) in the agriculture sector over the next few years.

Most of the time investing really is just that simple. It’s a matter of realizing it before anyone else. Chart the continuing trend of less farmland per person and find more from Andrew Mickey.

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