2024-04-02 14:56:36 ET
Summary
- VanEck Agribusiness ETF has declined by 11% in the past year, indicating a struggling agriculture sector.
- Global grain supplies have increased due to factors such as increased levels of CO2 and agricultural advancements.
- US farmers are facing low commodity prices, rising production costs, and cancelled orders, posing challenges for Deere & Company.
Preamble
I’m pretty sure that most investors in the agriculture sector figure that it’s a safe investment, after all, we all have to eat, right? This strategy hasn’t proven to be very unsuccessful in recent years, as evidenced by the 11% decline in the VanEck Agribusiness ETF ( MOO ) over the last 12 months.
Many commodities have had an almost persistently low price for several years despite the kind of news that one would expect to give prices a hefty shove north. For instance, around a year ago, an acquaintance of mine bet heavily that the price of wheat would do a moon shot because he had read some report or other of a drought in Kansas. Needless to say, he lost money....
Read the full article on Seeking Alpha
For further details see:
Deere: Increasing Food Supply And Rising Costs Spell Bad News For Investors