How To Invest In Corn

If you want to profit from the ever rising commodity price, then you need to know how to invest in corn. So why invest in corn? Corn is a commodity that has integrated into just about every part of our industrial complex, anywhere from feeding stock to ethanol production. Increasing demand in ethanol has driven up corn price, and it may continue to do so in the foreseeable future. Investing in corn can take many forms. This article will explain several of ways you can invest in corn.

To invest in corn, you will need:

  • Stockbroker
  • Bank Account
  • Computer with Anti-Virus Software
  1. Decide your vehicle of investment. There are many ways that you can invest in corn, and you need to decide what method fits best with your investment strategy. You can invest in corn ETFs, future, mutual funds, and company stocks.
  2. Invest in corn directly. Buying corn futures maybe the most obvious way to invest in corn, but it is not for everyone. The future market is extremely volatile, and it is only recommended if you are a seasoned trader.
  3. Invest in corn ETFs. ETFs trade like stocks. They are investment funds that track various indexes. Corn ETF tracks the corn commodity prices. It is not nearly as volatile as the future markets.
  4. Invest in corn mutual funds. You can invest in mutual funds that have substantial exposure to corn or agriculture commodities.
  5. Invest in corn company stocks. There are companies that profit directly from corn. Investing in those companies stock can also help you profits from increasing corn prices.
  6. Consider other alternatives. There are other methods that allow you to get exposed to corn. For example, corn price is usually tied with ethanol price, since a substantial amount of corn is used in producing ethanol. Investing in ethanol related assets might also be a good idea.

Warning:

The commodity market is extremely volatile. You need to invest with great caution.

 

References:

http://www.organicconsumers.org/articles/article_974.cfm

http://www.nebraskacorn.org/usesofcorn/index.htm

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