Daily Sound Bite: Cheaper Crops Help Food Makers
An analyst says food manufacturers will benefit from a record crop of grains and oilseed in the U.S. this year. The crop has replenished grain inventory and has led to lower agricultural futures prices, which could mean 20 percent lower grain and oilseed prices next year. Citi Investment Research analyst David Driscoll said in a note to investors:
"We recommend that investors increase their exposure to U.S. food manufacturers on the thesis that agricultural deflation in 2014 will drive higher margins, volumes, and earnings per share, beginning in January 2014."
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