This is how you profit off the current food shortage

The billionaire investor Jim Rodgers is renowned for his constant bullish outlook in the commodity markets. While many traders get caught up in the dangers of the stock and derivative markets, Rodgers has always maintained the belief in investing in tangible objects. While many people denounce his methods, he is currently laughing all the way to the bank as food prices are at record highs and his Agricultural Index Fund has skyrocketed over the past two months. Rueters reports on the growing food shortage and what it means for investors:

Corn and soybeans soared to record highs on Thursday as their meteoric month-long rally fueled by a worsening U.S. farm-belt drought stirred fears of a food crisis like in 2008 when riots broke out in some countries.

As prices for corn and soybeans continue to rise in the world’s largest grain exporter, there are signs that importing nations are buying less grains from the United States.

U.S. government data on Thursday showed that sales of soybeans to buyers overseas fell to the lowest level in six months last week. For corn, the weekly sales were one-fifth of a year ago, with Taiwan choosing to cancel a large purchase.

“I hesitate to use those words (food crisis) but the circumstances are more severe now than they were in 2008,” said Dennis Gartman, a commodity trader and editor/publisher of The Gartman Letter.

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