...emerging markets to ramp up their standard of living. These days we are witnessing an increasing consumption ranging from to high-quality food staples to luxurious items...

 
   

It is not a secret that the global population that recently exceeded 7 billion people and needs to eat and the food crises will increasingly become severe in coming decades as the global demographic issues such as an increasing need in the populations of emerging markets to ramp up their standard of living. These days we are witnessing an increasing consumption ranging from to high-quality food staples to luxurious items. These demographic issues seem to be only in its early stages, and they are expected to continue for the foreseeable future. That means a higher need for technologies and capabilities to improve agriculture productions. All this been said, evidently, prices of agricultural commodities and technology should continue rising on a longer-term basis.  Monsanto Symbol: MON; Price: $69; market cap: 37B; Price/Earnings: 23.53; Beta: 0.94; a provider of agricultural products for farmers such as seeds, biotechnology trait products, herbicides and solutions that improve agricultural productivity. Monsanto's activity in the past years could drive the stock to be one of the leading in this sector. On the other hand, if the global economy deteriorates next year, that putting money into agribusiness stocks may find themselves harvesting capital losses.

 

 
Investors have fled the sector of agriculture and the fertilizers, and the farm equipment manufacturers stocks are now flat cheap.
As far as for the farmers they are still running full throttle even though 2011 was a record year for farming income in the United States. The outlook is still very positive for further growth in 2012. In the farming equipment category, demand is expected to remain strong, especially for high horsepower equipment. Farm-machinery sales are projected to rise between 5% and 10% in 2012.

 

 
Monsanto's technical analysis indicated a price range from 64 to 74 in the past year see chart above.
Reasonable to counter trade the range bands extremes with spreads. Long calendar spreads are likely to be profitable also.