Investors have been paying close attention to the rally in gold prices, and while gold is likely headed higher, don’t overlook the ‘soft’ commodities. The prices of soft commodities, such as wheat, corn, coffee and cotton have been on fire. Coffee recently hit $2 a pound, a price not seen since 1998. Cotton is at $1 a pound, a 15-year high.
The best long-term commodity play is with food. The world’s supply of farmland is shrinking because of development combined with a growing emerging market — especially China and India — middle class will force up food prices for years to come. The world’s best food companies aren’t found in Asia but are instead in the United States.
The United States has been running massive trade deficits for years, but food is one of the few U.S. industries that has been a net exporter. Watch my video to learn how you can profit from this multi-decade trend and my three favorite U.S.-based food stocks.