Can Food Prices Rebound?
Commodities prices have done a complete 180 since the end of June. To reflect for a moment: oil was trading above $147/ barrel, copper was $4/ pound, and corn was trading in Chicago for almost $8/ bushel! It seemed that commodities would be the leading asset class of the year and supply concerns justified inflated prices. However, commodities were dragged down as sentiment turned on oil, culminating in a 25% drop in the iPath Commodity Index since the end of June. Many fear the commodities bull has passed and the sustained high commodities prices demand has deteriorated. Many market participants have decided to take their cash out of commodities companies. This provides the ideal opportunity for those with the conviction and tolerance for a little volatility to purchase some solid companies at a favorable price. Bunge Limited, an industrial grains processor, is the perfect example of an international leader with long-term viability whose stock price has been caught in the commodities c
