Grain prices have skyrocketed in the past few months as investors react to the ongoing crisis in Ukraine. Wheat has soared to a record high while Soybeans have risen to the highest point since 2012. Corn has also jumped to its 2015 highs. Here are some of the top agricultural stocks to focus on as grain prices surge.
Archer-Daniels-Midland
Archer-Daniels-Midland (NYSE: ADM) is one of the biggest agricultural companies in the world valued at over $46 billion. The company has annual revenues of over $85 billion and a net income of more than $2 billion.
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ADM is a leading company that sources and manufactures agricultural products like cooking oil, flavours, and edible oil among others. It has operations globally.
Analysts expect that the ADM stock price will keep rising as soft commodities prices increase. Indeed, the shares are trading at their all-time high, and some analysts believe that the trend will continue. The stock has soared by 120% in the past five years and 85% in the past 12 months.
Nutrien
Nutrien (NYSE: NTR) is a giant Canadian company that is in the fertilizer manufacturing industry. The company is set to benefit now that the US and other western countries have sanctioned Russia, a country that produces vast amounts of fertilizer. This explains why the Nutrien stock price has soared to an all-time high. It has risen by almost 30% this year.
Nutrien’s business has been in a rapid growth path. Its revenue in 2021 rose to over $26 billion up from $20 billion a year earlier. In the same period, its net income jumped from about $459 million to over $3 billion. With grain prices rising, it means that more farmers will be able to afford fertilizers, which will benefit the company.
Bunge
Bunge (NYSE: BG) is one of the biggest grain companies in the world with a market cap of $15 billion. It forms part of the ABCD of the agricultural industry. A is for ADM, C for Cargill, and D for Louis Dreyfus.
Like ADM and Nutrin, the Bunge stock price has been in a strong bullish trend in the past few months. It has jumped by 36% in the past 12 months and is hovering near its highest level since 2010.
Bunge buys agricultural products from farmers and sells them globally. It also adds value to these products and creates products like flour and edible oil.
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