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4 Agricultural Stocks to Buy with Inflation Increasing -Breaking

by Mike Robinson

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© Reuters. Four Agricultural Stocks You Should Buy With Inflation Increasing

Inflation has been rising due to the continued economic recovery as well as rebounding demand in spite of numerous supply shortages. There are growth opportunities in the agriculture industry because global food prices have jumped significantly over last year. Given the rising inflation, we think fundamentally strong agricultural stocks of Archer-Daniels-Midland (ADM), Corteva AGCO Corporation (AGCO), Intrepid Potash(NYSE:) and AGCO Corporation Corporation (AGCO) are solid investments now. Let’s pore over these names.The supply chain disruptions amid rebounding demand as the global economy recovers from the negative effects of the COVID-19 pandemic have led to increased commodity prices, which is contributing to inflation. In September, the annual U.S. inflation rate was 5.4%. This is an increase from the 5.3% recorded in previous months. This rise was reflected in the 4.6% increase in food prices year-over–year. The prices of meat, poultry and eggs have increased 15% over pre-pandemic levels.

According to the UN Food and Agricultural Organization’s (FAO) monthly Food Price Index, global food prices in September have inflated 33% from the past year and 3% since July, reaching its highest levels since 2011. These are solid opportunities for growth in the agriculture industry. Global agriculture is projected to expand at a rate of 7% to $13.13 trillion in 2025.

Given this backdrop, we think agricultural stocks of Archer-Daniels-Midland Company (NYSE:), Corteva, Inc. (CTVA), AGCO Corporation (AGCO), and Intrepid Potash, Inc. (IPI) will gain substantially. These stocks are solid investments now.

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