The Commodities Price Boom Benefits These Stocks

Soaring commodity prices and growing demand from the emerging markets are sending food prices sky high. They’ve already contributed to revolutions in the Middle East, forced central banks to take action in Asia, and hit consumers around the world, but what companies are benefiting from this boom?.Bank of America (NYSE:BAC) has compiled a list of its top stock picks that are positioned to reap the benefits of this boom,  and we’ve highlighted which of their picks have risen the most since the start of the year. 

CNH GLOBAL (NYSE:CNH)

CNH GLOBAL (<a target=<A HREF=” />NYSE:CNH)” />

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Year-to-date gains: 4.17%Farm cash receipts, the primary long-term driver of farm equipment demand, are expected to grow 9% this year

Based on a report by Bank of America, YTD as of April 4, 2011.

CF HOLDINGS (NYSE:CF)

CF HOLDINGS (<a target=<A HREF=” />NYSE:CF)” />

Year-to-date gains: 5.23%Higher commodity costs will drive farmers to plant more which means more fertilizer sales for companies like CF.

Based on a report by Bank of America, YTD as of April 4, 2011.

MONSANTO COMPANY (NYSE:MON)

MONSANTO COMPANY (<a target=<A HREF=” />NYSE:MON)” />

Image: omafra.gov.

Year-to-date gains: 6.33%This seed provider is benefiting from the rise in U.S. agricultural exports of 12% in 2010.

Based on a report by Bank of America, YTD as of April 4, 2011.

FMC CORPORATION (NYSE:FMC)

FMC CORPORATION (<a target=<A HREF=” />NYSE:FMC)” />

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Year-to-date gains: 8.76%Chemical companies are seeing bigger sales numbers as these companies can now charge farmers more for their products.

Based on a report by Bank of America, YTD as of April 4, 2011.

AGCO CORPORATION (NYSE:AGCO)

AGCO CORPORATION (<a target=<A HREF=” />NYSE:AGCO)” />

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Year-to-date gains: 8.78%Low interest rates will also be a major incentive for farmers to buy more equipment from companies like AGCO.

Based on a report by Bank of America, YTD as of April 4, 2011.

DUPONT (NYSE:DD)

DUPONT (<a target=<A HREF=” />NYSE:DD)” />

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Year-to-date gains: 11.45%Emerging markets are cutting or removing import tariffs to help control food costs which will boost U.S. farming.

The USDA expects 2011 to top the U.S. ag exports hit of all time from 2008 which was $115.3 billion.

Based on a report by Bank of America, YTD as of April 4, 2011.

POTASH CORP (NYSE:POT)

POTASH CORP (<a target=<A HREF=” />NYSE:POT)” />

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Year-to-date gains: 19.05%Global food demand is huge and keeps growing which is boosting this company’s shipment numbers.

Management said they expect global demand to reach 55 million tons for Potash fertilizer this year.

Based on a report by Bank of America, YTD as of April 4, 2011.

DEERE & CO. (NYSE:DE)

DEERE & CO. (<a target=<A HREF=” />NYSE:DE)” />

Year-to-date gains: 19.49%The USDA forecasts net farm income will rise 20% this year which will boost farm equipment profits.

Capex spending on farm equipment from manufacturers like John Deere will be boosted by stable land values and healthy balance sheets.

Based on a report by Bank of America, YTD as of April 4, 2011.

ARCHER DANIELS MIDLAND (NYSE:ADM)

ARCHER DANIELS MIDLAND (<a target=<A HREF=” />NYSE:ADM)” />

Year-to-date gains: 22.07%Grain-producer Archer Daniels has announced plans to expand its storage capacity to accommodate the increase in global demand. Emerging markets are expected to maintain solid growth rates for the next five years.

Based on a report by Bank of America, YTD as of April 4, 2011.

TRACTOR SUPPLY COMPANY (NASDAQ:TSCO)

TRACTOR SUPPLY COMPANY (<a target=<A HREF=” />NASDAQ:TSCO)” />

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Year-to-date gains: 26.23%High commodity prices are expected to stay high for the next few years which is positive for the global agribusiness.

Based on a report by Bank of America, YTD as of April 4, 2011.

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