How to Buy Corn Stocks

Corn is a versatile crop with many uses.

Corn is one of the most versatile crops in the world. Corn is food and also a primary component of ethanol. Investors interested in buying corn stocks have a variety of opportunities to consider.

Suppliers

Focus on companies that provide the seeds and fertilizer used to grow corn. These suppliers often benefit from sales gains before increases in corn production.

Growers

The United States grows almost half the world's corn. Corn growers range in size from family farmers to giant multinational corporations. Most larger growers also produce other agricultural products and offer only indirect exposure to corn.

Processors

Corn processors are the opportunity to profit when corn prices are down, because lower prices usually mean that farmers have harvested a larger crop that will need to be processed. Soyatech, a leading agricultural industry advocacy organization, provides a list of major corn processing companies on its website.

Price Trends

Invest in shares of an exchange-traded fund to take advantage of wholesale increases in the price of corn. Exchange-traded funds trade on stock exchanges, just like shares of stock. Seeking Alpha identifies several exchange-traded funds that allow investors to capitalize directly or indirectly on movements in the price of corn.

Due Diligence

Seek the services of a qualified adviser before investing in corn stocks. All investments have inherent risks, and corn might not be a suitable investment for your risk profile.

References

• Soyatech: Corn Facts
• Seeking Alpha: "Four ETFs to Capitalize on Corn's Growing Price Momentum"

Resources

• Investment U: "Investing in the Corn Market: Butter Up Your Portfolio with Great Gains"