Drought Sends Agricultural Commodities Prices Rocketing; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor Danny Esposito points out the U.S. Midwest is in the midst of a drought.

New York, NY (prHWY.com) August 8, 2012 - In a recent Penny Stock Detectives article, editor Danny Esposito points out the U.S. Midwest is in the midst of a drought, the likes of which it has not experienced in 50 years. Esposito notes that the brutal conditions are scorching farmland, destroying corn and soybean crops especially, and sending many prices of agricultural commodities rocketing higher.
"The bad news continues, as forecasters believe the drought will most likely persist for most of August," reports Esposito.
This forecast has pushed the prices of agricultural commodities higher, as there is no way the farmland can produce any crops under these extreme conditions, says Esposito. According to the Penny Stock Detectives editor, close to 88% of all corn and soybean crops planted on farmland across the U.S. are being affected. Other agricultural commodities, including wheat, are feeling the ramifications, as 54% of all farmland in the U.S. is under very poor growing conditions due to the drought, he adds.
Having been declared federal disaster areas, 1,300 counties in 29 states qualify for aid since their farmland is unable to produce the agricultural commodities that were planted just months before, comments Esposito.
"This is starting a chain reaction, affecting other agricultural commodities. Corn and soybeans are a staple food farmers use to feed their pigs, cows, and other livestock. That means meat prices within the agricultural commodities space could also rise as a result of the drought," Esposito reasons.
These price increases could lead to food prices also rising for the average consumer. Restaurants may have to charge more, as they will have to pay more for the ingredients they purchase every day.
Esposito also points out that wheat is an agricultural commodity that is found in many foods that the average American purchases. With wheat being affected, everything from milk to cereal to butter to baked goods could rise in price in the next few months, as farmland continues to be unable to produce the agricultural commodities that were planted just a few short months ago, he says.
"Generally, the rise in agricultural commodities prices could produce food inflation, and a rise in food inflation, in general, would then come at a time when consumers across the U.S. are already struggling with high unemployment and low jobs growth," observes Esposito.
If investors want to benefit from this rise, Esposito suggests looking at the companies that could benefit, like those in the meats industry, since those agricultural commodities have not moved up in price to the same degree as corn and soybean prices.
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com

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Tag Words: farmland, agricultural commodities

Categories: Business

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