Top Performing Wheat Stocks

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Contributor, Benzinga
July 28, 2024

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Wheat is a grain that finds itself in many types of food. Some investors buy wheat stocks and futures to capitalize on the crop’s importance in the food supply. Wheat is the third most planted crop in the U.S. by acreage. The crop has global appeal, and some investors want to position their portfolios to profit from the durable crop. This guide will outline some of the best wheat stocks to consider.

Quick Look at the Top Performing Wheat Stocks:

Deep Dive

Wondering which wheat stocks to add to your portfolio for extra diversification? These are some of the top wheat stocks to consider. 

1. Deere & Co. (NYSE: DE)

Deere & Co. produces farm equipment and tractors that wheat farmers need to facilitate smooth operations. Deere & Co. is working on an automated tractor that can save wheat farmers time and further cement the company’s dominance within the industry. 

2. Bunge (NYSE: BG)

Bunge is an agribusiness that sells wheat, corn, soy and other grains. The company gives investors exposure to several grains instead of exclusively wheat. The company is merging with fellow agribusiness giant Viterra to increase market share. The company has cyclical ups and downs but has managed to maintain the dividend.

3. Archer-Daniels-Midland Co. (NYSE: ADM)

Archer-Daniels-Midland is a food conglomerate that has exposure to wheat. The company mills grain and refines them into wheat and various flours. Archer-Daniels-Midland is an integral part of the food supply chain.

4. Adecoagro (NYSE: AGRO)

Adecoagro is a farming company that is based in South America and produces grains, rice, crops, dairy and sugarcane. The company has generated positive free cash flow since 2015 despite the cyclical nature of the industry. Its low-cost strategies enable higher profit margins and have helped the company return 39% to shareholders year-to-date.

5. CME Group (NASDAQ: CME)

CME Group doesn’t have direct exposure to wheat, but the firm manages the Chicago Mercantile Exchange. Many investors rely on this exchange to trade wheat futures and other derivatives tied to the performance of grains, crops and other commodities. As these trades become more frequent, CME Group makes more money.

Pros

Investing in wheat stocks gives you exposure to changes in the crop’s price. Disruptions in the supply chain have helped wheat prices rise in recent years. Many corporations benefit from the strong demand for wheat, such as farmers and equipment manufacturers.

Wheat stocks let you benefit from rising wheat prices, but these assets also provide diversification. Many wheat stocks also have some exposure to other crops and business verticals. These stocks don’t necessarily match wheat price movements 1:1, but good news for wheat can drive these types of stocks higher. 

Where to Buy

Working with the best stock broker can minimize your fees and give you more opportunities. If you want to invest in wheat stocks, these are some of the top brokers to consider.

Frequently Asked Questions 

Q

Can you trade wheat on the stock market?

A

You cannot trade wheat on the stock market. However, you can trade stocks that give you exposure to wheat.

Q

Are wheat stocks a good investment?

A

Wheat stocks can be a good investment for investors who want exposure to the industry. These stocks are cyclical, but people will always need to eat.

Q

What are the best agriculture stocks to buy?

A

The best agriculture stocks to buy depend on your risk tolerance and objectives. With that said, Deere and Co. has rewarded long-term investors nicely and continues to innovate. However, it may not be the right stock for you depending on what you want from an investment.

Best Wheat Stocks Methodology

The best wheat stocks methodology involved analyzing companies with direct or indirect exposure to wheat. Companies had to be in positions to benefit from the rising demand for wheat to be included in this list.

Marc Guberti

About Marc Guberti

Marc Guberti is an investing writer passionate about helping people learn more about money management, investing and finance. He has more than 10 years of writing experience focused on finance and digital marketing. His work has been published in U.S. News & World Report, USA Today, InvestorPlace and other publications.