While wreaking havoc on grain crops, the worst U.S. drought in a half century is providing opportunities for companies that provide and pump the most precious of commodities — water. While the drought is testing farmers and food producers, the volatility in weather patterns is giving water companies new revenue sources, as they provide solutions to the environmental challenges.
As a result of a Congressional mandate passed in 2005 and expanded in 2007, over 40 percent of this year’s greatly depleted corn crop will be diverted from food and livestock, and instead be sold at the gas pump. We are trading our precious, fertile acres of farmland for a small dent in our oil usage. We are prioritizing our goal to reduce oil dependence over providing food to people.
As the U.S. drought continues and global grain prices soar, G20 leaders are considering an emergency meeting at the end of August to consider what measures to take to combat the growing food crisis. But the surge in corn, soy and wheat prices could also lead to some benefits for the agricultural sector and an opportunity for investors, according to one fund manager.
The Fast Money traders share their final trades of the day.
Tuesday, 18 Jun 2013 | 5:00 PM ETAhead of the Fed meeting, the S&P 500 appears headed toward 1,687, StockMonster's Guy Adami says.
Tuesday, 18 Jun 2013 | 6:40 PM ETYou say the name of a stock, and Mad Money's Jim Cramer tells you whether to buy or sell.