Top 3 wheat-producing companies in 2022

Investors interested in accessing the wheat market directly usually trade wheat futures.

Wheat is one of the most actively traded agricultural commodity assets of the Chicago Board of Trade (CBOT).

There are no publicly traded joint-stock companies that reflect the net value of wheat.

Stock traders can choose between stocks of large agribusiness firms such as Archer Daniels Midland Company (NYSE: ADM) or fertilizer suppliers such as Mosaic Company (NYSE: MOS).

Here are three of the best wheat producers to stock up on in 2022.

Archer Daniels Midland Company (ADM).

Archer Daniels Midland, founded in 1898, is an international agro-industrial company that produces and sells agricultural products.

ADM has more than 600 facilities related to the production and processing of crops worldwide.

The company also deals with transportation, trade finance and insurance.

Its size, global base, and diverse product portfolio provide the company with a significant competitive advantage.

Currently, ADM continues to expand into emerging markets. For example, in 2019, it opened the fourth factory for food products in China.

ADM shares have fallen by more than 30% since the pandemic. But since the end of March 2020, the stock has recovered in price and continues to grow even in 2022.

The company has a market capitalization of $46.99 billion. The average dividend yield is 1.91%.

The price/book value (P/B) ratio is 2.10, and the debt-to-equity ratio is 0.42.

Bunge Ltd. (BG).

Bunge Ltd. (NYSE: BG) operates globally as a food and agribusiness firm across five significant segments: agribusiness, sugar and bioenergy, food-grade petroleum products, grain milling products, and fertilizers.

The main segments of its agricultural business are the purchase, processing, storage, transportation and sale of a wide range of farm products.

Bunge has a market capitalization of $15.52 billion.

The dividend yield is 1.91%.

In March 2020, shares were trading at $35, down more than 30% since the beginning of the year, but are only growing since then. In 2022, shares reached the level of $109.

Analysts expect Bunge’s earnings to grow 10.1% annually over the next three years.

In addition, the company is attractive from the point of view of futures valuation – the ratio of the share’s market value to annual earnings per share on forwarding contracts (P/E) is 8.17.

Mosaic Company (MOS).

Although Mosaic was founded only in 2004, it quickly became the largest potash and phosphate fertilizers producer in the United States.

The company extracts, processes and sells phosphate and potash biogenic elements worldwide – in almost 50 countries.

Mosaic shares start to rise when the price of nitrogen and phosphate turns up. There is no doubt that the world is experiencing a long-term increase in demand for agricultural products and a concomitant increase in the need for fertilizers.

Mosaic management strives to reduce its operating and capital expenditures (CAPEX). As a result, the stock is attractive for value investors as it has a high P/B ratio.

In March 2020, Mosaic shares were trading around $10 apiece, down more than 50% since the beginning of the year. As of March 2022, shares are already worth more than $61.

Mosaic shareholders are paid a dividend yield of 0.73%.

The company has a market capitalization of $22.806 billion. But, as it expects, revenues will grow by almost 30% per year over the next three years.

? Best Online Brokers Editor’s Pick

Relevant news