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Shelley Goldberg

The Right Investment Play on Agriculture Futures

Choose equities over individual commodities.
Corn is down.

Corn is down.

Photographer: Daniel Acker/Bloomberg

Investors with a macro view of the global economy will undoubtedly take into account population growth. Even though the pace of the expansion has peaked (1962-3), the overall number of people continues to grow, led by emerging markets. Estimates have put the total at 8.4 billion by mid-2030, and 9.6 billion by mid-2050. Contributing to this statistic is that people are living longer.

A logical conclusion would be that because there is an ever-growing number of mouths to feed, there will be a greater demand for food. This rising demand poses challenges for farming and the production of sufficient food supply, forcing up the prices of agricultural commodities, making commodity agriculture futures an attractive pure play investment, an optimal choice for consistent growth and income. Right?