Potash Is Poised to Deliver
In the past several weeks, I've expressed concern about rising food prices, and I recommended McCormick & Co. (MKC) as a way to profit from the eat-at-home resurgence. It's no secret that the drought of 2012 accelerated the food pain-point being felt by most everyone. What used to be a quick trip to the grocery store has morphed into a hit to the wallet. While it's tempting to invest in major food chains -- Kroger (KR), Safeway (SWY) and Harris Teeter Supermarkets (HTSI) -- those margins are razor thin.
Rather than invest in the food pain-point that way, another route is to take advantage of the drought's effect on U.S. farmland. According to the U.S. Department of Agriculture, about 80% of U.S. agricultural land experienced drought in 2012, which made the 2012 drought more extensive than any since the 1950s. That tells me farmers will be pulling out the stops this spring to get their land ready -- and that means fertilizers. Adding another layer to this pain-point is China's 2013 export duty on several fertilizers, including phosphate, which is one of the more common fertilizers used in the production of corn, cotton, soybeans, wheat and other crops. Two other common fertilizers are nitrogen and potash....353 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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