Barron's Recs $BG For Soybean Uptake

Note: This is a few weeks old, but, I am placing it here as a way to play soybeans:

Consider the humble soybean: Small, round, nutritious, and versatile. Lately, the soybean has also been surprising: Its price has jumped nearly 12% over the past year, making it an increasingly lucrative commodity amid high food inflation. And that’s great news for agribusiness giant Bunge .

It might not seem that way at first. Chesterfield, Mo.-based Bunge (ticker: BG) buys crops—mainly soybeans but also corn, grains, and others—and then transports, stores, and processes them. It sells them in their finished state, which includes feed for livestock, cooking oil for home and restaurant kitchens, and biofuels. With crop prices soaring, Bunge’s costs are rising, and that should eat into Bunge’s profits.

Except that it isn’t: The high prices it can command for its products exceed the increased payments to farmers. Soy meal, for instance, has risen about 20% in the past year, while soy oil has climbed 40%. Dislocations in the global supply chain clearly are working in Bunge’s favor. Simply put, the world’s appetite for these goods hasn’t diminished, even though bottlenecks have limited supplies. All that points to more upside for the stock.

$BG is lower today (on this past Friday’s close) than it was the day after this call to buy it back on Apr.6:

Soybeans is big business in the US. Another grain trader is ADM. And Cargil is big too but they are private.

1 Like

And some play ag stocks like John Deere, Corteva, CF Industries, and Mosaic. I’m sure there are more.

1 Like

$ADM good reminder. I was not aware Cargill had gone private. Thanks for the $ADM tip. I’ll chart that one for a look-see.

Yeah, I already had $ADM charted in a chartlist containing stocks with over 1,000,000 average shares traded daily and which are still in a 20 x 50 bullish EMA rise.

Out of thousands of stocks on all American exchanges, there are only 217 stocks which make this cut.

But $ADM is one of them; however, this past Friday it did post a breakdown of trendline support.

Nothing to freak out about yet.

The trendline might just tick down in pitch, like the second hand of a watch ticking downward and stopping below where it was a second(s) ago. I’ll patiently wait for a downtrend reversal here before nibbling.

$ADM is one of only 217 American stocks which trade over 1,000,000 shares daily AND which are still showing a 20 x 50 EMA bullish crossover intact.

Friday, $ADM broke a trendline support on the daily chart. Watchlist for a new trendline reset.