ETFS pinpoints investment themes in agribusiness
ETF Securities says in a research note that record incomes by US farmers is just one of the themes making agribusiness a sector to watch through the remainder of 2013.
Besides weather-driven supply shocks, which have pushed up prices for certain agricultural products, leading farmers to plant more this year, in turn increasing demand for goods and services such as fertiliser.
Consolidation in agribusiness is an ongoing theme, with companies seeking to boost value chains.
While there are issues around valuations given certain cyclical indicators, ETFS said that the long term trend of growing demand for agricultural produce from emerging markets made for a strong argument to add this type of diversification to portfolios.
To read the full report click here: [asset_library_tag 6871,Agribusiness]