As we approach the end of the harvest season in the northern hemisphere, we are expecting a fourth consecutive bumper crop. Prices, quoted in dollars per bushel, have been falling steadily since the summer of 2012. When prices are very low, farmers lose money. When they lose money, they default on loans, or sell land, or plant something else. Import demand from other countries picks up. Eventually, the stock of crops

in storage, which today is a large overhang on the market, reduces and prices begin to rise. There are many ways to benefit from a turnaround in grain prices. One way is to buy future contracts, but beware of leverage. You may also buy agriculture commodities ETFs. There are several that trade on the exchanges. Moreover, shares of companies that manufacture agricultural chemicals or fertilizers also benefit when the price of the underlying commodity rises.