Food for thought

The soaring prices of agricultural commodities have created worldwide fears over food shortages and inflation. At a time when the potential of rival asset classes looks lacklustre, investing in agricultural commodities promises big gains. But there have been rumours of excessive speculation in this type of commodity, which have led to doubts about the sustainability of prices. So are agricultural price rises a short or long-term trend? And if prices are sustainable, should investors buy into the commodities themselves or into commodities companies? Short and long-term drivers There is...