Nine billion. That's how many people will need to eat in 2050: Two billion more than today. The number is huge, but the growth rate is only 0.6% a year -- considerably slower than the pace we have grown at.
So why are food prices skyrocketing? Most likely, it is a short-term mismatch between supply and demand -- much like in 2007-08. And, like then, prices will return to Earth, likely sooner rather than later. Prices on soft commodities are only now flirting with the highs seen in mid-08. A short-term punt on commodity prices at this time could end badly. But with food demand rising steadily, firms providing agri-inputs -- fertilizers, hi-tech seeds, tractors -- are a better long-term investment.
|Avg Daily Volume||1.63 Million Shrs|
|Avg Daily Volume ($)||$90.56 Million|
|Total Market Cap||$3.76 Billion|
|ETF Annual Fee||0.59%|
|ETF Trading Currency||USD|
|ETF FX Exposure||USD 50% / Various 50%|
|Correlation to S&P 500||Not Available|
|Return to Risk Ratio||Not Available|
|Use of Leverage||No|
|Use of Futures||No|
|3 Year Return||-0.45%|
|Dividend Yield (TTM)||0.59%|
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.