Wheat and corn prices continue to drive the profits of farmers up, resulting in capex from them toward companies like Potash Corp (NYSE:POT), Syngenta (NYSE:SYT), Mosaic (NYSE:MOS) and Compass Minerals (NYSE:CMP).
How quickly the griping from farmers has subsided since the worst of the recession when they were complaining about high input costs.
The U.S. will control 28 percent of global wheat exports in 2011, an increase from 18 percent in 2010, according to the U.S. Department of Agriculture. With prices averaging about $8 a bushel this quarter and the next, the highest levels in three years, farms will earn approximately $94.7 billion, according to analysts’ forecasts compiled by Bloomberg and an estimate from the USDA.
Other considerations for investors to consider is how this will impact shipping. Expectations are shipping lines won't benefit much from the increase in production because the U.S. is replacing lost supply from Russia and Ukraine.
Domestically it could help those companies shipping within borders, as it could offer some major boosts in that regard.
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