I have spent much of the summer in Iowa, in the heart of the new dust bowl, so implications of the drought are on the top of my mind at the moment. And last night I visited the Iowa State Fair, one of those all-American events that is a combination trade show, entertainment festival and the ultimate food court. There is no better place to take the pulse of the "on the ground" players in the industry.
Some of the investment implications of the drought are obvious. Commodity prices are going higher, especially for corn which has been hit the hardest, so look for unexpected input cost inflation at the major processed food players such as ConAgra (CAG) and Kellogg (K). Those companies typically have pricing power and will take action in the near term, but the softening economy may not allow a full pass-through as normal....288 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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