Two Ways To Play: There Was a Farmer Who Had Some Dough...
Strengthen your portfolio in good times and bad.
The farmland boom is a reflection of surging commodity prices. In the last year wheat futures soared 77% on the Chicago Board of Trade while soybeans and corn rose 78% and 17% respectively. This increase is expected to push net farm income to $92.3 billion this year, up 4% from $88.7 billion the prior year.
For context on the commodity space, read Professor Ryan Krueger's Commodity Bull Run Not Over.
From the Bull Pen: For those bullish, one option can be to fade (read: buy) Potash (POT) as the stock falls to its 200 DMA. Sell-stops can be set below $165.
From the Bear Cave: Ag bears can play the downside using the Ag ETF (DBA). It's mostly bears that live below the 200 DMA ($36.25). Buy-stops can be set above that level.
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