Food Scare: Global Food Prices On The Rise

Food Scare: Global Food Prices On The Rise

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Many factors including the higher price of oil, poor weather reports from around the globe, and strong demand from Asia are pushing the price of food higher on a global scale. The World Bank food price index showed an increase of 8% in the cost of food between December and March, according to Reuters.

Price had declined the previous four months, and food prices still remain 1% below a year ago and 6% below the historical peak in February of 2011. OtavianoCanuto, the VP for poverty reduction and economic management, said that the increase though, is “threatening the food security of millions of people”. The World Bank said that the price indices of grains, fats and oils, and many other foods have been increasing since January of this year.

One of the foods that haven’t increased though, is rice. Its decrease is due to abundant supplies and strong competition among the exporters.

If the prices continue to increase, the higher levels will need close monitoring and there is a possibility of social unrest in some countries like that of the food and energy price crisis in 2008/09. However The World Bank said it was hard to predict whether the price increase would lead to a global food crisis because there is no known mechanism to identify the onset of one.

Business Section: Investing Ideas

Food price changes will likely affect most companies in the agriculture industry, though different businesses will be affected differently. Below is a list of agriculture stocks that could see the results of the price increases. How do you think their stock prices will move in response?

List sorted by market cap.

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

“1. Monsanto Co. (MON, Earnings, Analysts, Financials): Provides agricultural products for farmers in the United States and internationally. Market cap at $40.31B, most recent closing price at $76.99.

 

“2. Potash Corp. of Saskatchewan, Inc. (POT, Earnings, Analysts, Financials): Produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. Market cap at $36.5B, most recent closing price at $44.64.

 

“3. Syngenta AG (SYT, Earnings, Analysts, Financials): Engages in the discovery, development, manufacture, and marketing of a range of products designed to enhance crop yields and food quality worldwide. Market cap at $32.53B, most recent closing price at $71.10.

 

“4. Agrium Inc. (AGU, Earnings, Analysts, Financials): Produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas and Australia. Market cap at $13.92B, most recent closing price at $88.40.

 

“5. CF Industries Holdings, Inc. (CF, Earnings, Analysts, Financials): Through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. Market cap at $12.59B, most recent closing price at $189.98.

 

“6. Terra Nitrogen Company, L.P. (TNH, Earnings, Analysts, Financials): Produces and distributes nitrogen fertilizer products to agricultural and industrial customers. Market cap at $5.21B, most recent closing price at $277.31.

 

“7. The Scotts Miracle-Gro Company (SMG, Earnings, Analysts, Financials): The Company Together With Its Subsidiaries Is Engaged In The Manufacture Of Lawn And Garden Care Products. Market cap at $3.18B, most recent closing price at $52.19.

 

“8. CVR Partners, LP (UAN, Earnings, Analysts, Financials): Engages in the production of nitrogen fertilizers including ammonia and urea ammonium nitrate. Market cap at $2.0B, most recent closing price at $27.21.

 

“9. Intrepid Potash, Inc. (IPI, Earnings, Analysts, Financials): Engages in the production and marketing of muriate of potash or potassium chloride, and langbeinite under the Trio brand name primarily in the United States. Market cap at $1.84B, most recent closing price at $24.10.

 

“10. Rentech Nitrogen Partners, L.P. (RNF, Earnings, Analysts, Financials): Engages in the production of natural gas-based nitrogen fertilizer and industrial products for agricultural uses.Market cap at $1.08B, most recent closing price at $28.24.

 

 

(Written by Danny Guttridge)

 

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3 Responses to “Food Scare: Global Food Prices On The Rise”

  1. toaster oven says:

    Food prices are rising all over the Globe. Due to rising costs of expences on vegitables, fruits and grains it is not unusual.

  2. Food prices definately growing due to heavy expences mostly due to costly pesticides usage for vegetable growth.

  3. read more says:

    Think about timely assistance on any given problem or theoretical theme of any kind. We can always cheaply cope with sample essays making the most strong efforts. We do our best to enlighten ideas properly in formal and literary forms for your personal instruction.

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