The world is starting to eat more like we do. With developing nations growing at a rapid pace, people whose diets were once nutritionally deficient are upgrading to beef and bread.
As a result, U.S. agricultural exports are expected to jump 23% this year to a record $101 billion, according to the New York Times.
To be sure, this new global diet doesn't come without some indigestion. It’s driving food and beverage prices higher; they’re currently growing at the fastest pace in nearly twenty years.
As more people eat well, which food plays could be winners?
Wheat and corn will probably go higher short term, says Tim Seymour, but if the ethanol subsidies go away supply could surge. If you want to play the space look at the PowerShares DB Agriculture as well as Potash and Monsanto , he says.
The ag names seem ahead of themselves to me, counters Pete Najarian. Be careful in this space.
Or look at Dupont as an ag play, adds Guy Adami. 25% of their earnings come from agriculture.