Wheat stocks saw major investor attention in 2022, as a result of high food price inflation throughout the U.S. economy.
Wheat is one of the most important cereal crops in the world, providing food for millions of people.
According to Expert Market Research, the global wheat market reached a value of $153.2 Billion in 2022, expected to grow at a CAGR of 5.3% from 2023 to 2028 (Expert Market Research, 2022).
The wheat market is an important sector within the agricultural industry, which accounts for a significant portion of the world’s economy.
In recent years, agriculture has faced significant challenges such as low crop yields and extreme weather conditions, resulting in a decline in global food production.
Additionally, high inflation has affected food prices in major advanced economies, making it difficult for consumers to afford essential food items.
As a result, investors should keep an eye on wheat stocks that are likely to perform well in 2023, given the current market conditions.
Below, we will present the 9 Best Wheat Stocks to Watch in 2023!
9 Best Wheat Stocks to Watch for 2023
- General Mills
- Archer-Daniels-Midland
- Bunge Limited
- The Andersons
- The Mosaic Company
- Seaboard Corporation
- Nutrien Ltd
- Adecoagro
- John Deere & Company
1. General Mills (NYSE: GIS)
- Ticker: GIS
- Dividend Yield: 2.42%
- Market Cap: $52.13 Billion
General Mills Inc. (GIS) is a multinational consumer goods company that is involved in the production and distribution of various food products, including wheat-based products such as cereal and flour.
The company has a strong brand presence and a diversified portfolio of products, which will help it capitalize on the growing demand for wheat products in 2023.
Some of their notable wheat brands include Gold Medal Flour, Pillsbury, Betty Crocker, Yoplait, and Nature Valley.
Additionally, General Mills has a strong commitment to sustainability and innovation, which positions it well for long-term growth in the wheat market.
2. Archer-Daniels-Mindland Company (NYSE: ADM)
- Ticker: ADM
- Dividend Yield: 2.31%
- Market Cap: $40.92 Billion
Archer-Daniels-Midland Company (ADM) is a global leader in the processing and distribution of agricultural commodities, including wheat.
The company has a strong presence in the wheat market, with operations in various regions around the world.
ADM’s vertical integration, from sourcing to processing to distribution, provides the company with a competitive advantage in the wheat market.
With a market cap of approximately $40 billion and a low payout ratio of 20.70%, Archer-Daniels-Midland is well position to grow its dividend for the foreseeable future.
3. Bunge Limited (NYSE: BG)
- Ticker: BG
- Dividend Yield: 2.70%
- Market Cap: $13.59 Billion
Bunge Limited (BG) is a global agribusiness and food company that is involved in the production, processing, and distribution of various agricultural commodities, including wheat.
Their main competitors are Archer-Daniels-Midland and Cargill, and some of their notable brands include Pristine Gourmet, Espiga, Whole Harvest and Maizal.
Bunge Limited employs more than 23,000 people and has approximately $24.58 billion in total assets.
In 2022, the company had annual revenues of $67.23 Billion.
4. The Andersons (NYSE: ANDE)
- Ticker: ANDE
- Dividend Yield: 1.69%
- Market Cap: $53.93 Billion
The Andersons, Inc. is a diversified company that is involved in various businesses, including the production, processing, and distribution of agricultural commodities such as wheat, corn, and soybeans.
Some of The Andersons notable brands include PureGrade and MicroSolutions fertilizers.
The Andersons employs more than 2,000 people and has approximately $4.60 billion in total assets.
In 2022, the company had annual revenues of $17.32 Billion.
5. The Mosaic Company (NYSE: MOS)
- Ticker: MOS
- Dividend Yield: 1.84%
- Market Cap: $14.27 Billion
The Mosaic Company is a leading producer and marketer of concentrated phosphate and potash crop nutrients.
With a strong background in crop nutrients, Mosaic will benefit from the increasing demand for fertilizers, which will help to improve wheat yields and increase production in 2023.
The Mosaic Company employs more than 12,000 people and has approximately $23.38 billion in total assets.
In 2022, the company had annual revenues of $19.12 Billion.
6. Seaboard Corporation (NYSE: SEB)
- Ticker: SEB
- Dividend Yield: 0.23%
- Market Cap: $4.48 Billion
Seaboard Corporation is a diversified agribusiness and transportation company that is involved in the production, processing, and distribution of various agricultural products, including wheat.
The company has been in business for over a century, providing essential resources across the agricultural value chain.
Seaboard has a strong balance sheet and financial position, which will allow the company to invest in growth opportunities and expand its operations.
Seaboard employs more than 12,000 people and has approximately $7.90 billion in total assets.
In 2022, the company had annual revenues of $11.24 Billion.
7. Nutrien (NYSE: NTR)
- Ticker: NTR
- Dividend Yield: 3.08%
- Market Cap: $33.69 Billion
Nutrien Ltd. (NTR) is a leading producer and supplier of agricultural inputs, including fertilizers, chemicals, and seeds, that are essential in the cultivation of wheat and other crops.
The company is well-positioned to benefit from the increasing demand for agricultural inputs, driven by the growing need for sustainable food production and the adoption of advanced farming practices.
Moreover, Nutrien has a diverse customer base, including farmers, retailers, and wholesalers, which helps the company mitigate risks and maintain a stable revenue stream.
Nutrien employs more than 20,000 people and has approximately $54.58 billion in total assets.
In 2022, the company had annual revenues of $37.88 Billion.
8. Adecoagro S.A. (NYSE: AGRO)
- Ticker: AGRO
- Dividend Yield: 3.86%
- Market Cap: $881.59 Million
Adecoagro S.A. (AGRO) is a leading agribusiness company that is involved in the production and processing of agricultural products in South America, including wheat.
The company has a diversified portfolio of assets, which includes over 500,000 hectares of farmland and several processing facilities.
Adecoagro’s strong focus on sustainable farming practices, efficient operations, and technological innovation has helped it achieve strong financial performance in recent years.
With the growing demand for wheat products in South America, Adecoagro is well-positioned to benefit from the increasing demand for this crop in 2023 and beyond.
9. John Deere & Company (NYSE: DE)
- Ticker: DE
- Dividend Yield: 1.31%
- Market Cap: $113.62 Billion
John Deere & Company (DE) is a leading manufacturer of agricultural machinery and equipment that is used in the production of wheat and other crops.
The company is expected to benefit from the growing demand for agricultural equipment in 2023, as farmers look to improve their efficiency and productivity.
In 2022, John Deere saw total net revenues of approximately $52.6 billion. Net income rose 19% year-over-year to $7.13 billion, despite supply chain constraints persisting from the year prior.
In addition, the company projects 2023 fiscal net income to be in the $8.0 – $8.5 billion range, projecting a rise of 15-20% sequentially.
They are one of the few companies who’s growth remains resilient despite operating in a higher interest rate environment where liquidity remains tight.
Investing in Wheat Stocks: Final Takeaway
Investing in wheat stocks in 2023 can be a smart move given the increasing demand for wheat products.
Wheat is one of the most important cereal crops in the world. Given the persistent of food price inflation, it may continue to boost wheat stock companies bottom line.
When picking wheat stocks, investors should always consider keep financial performance metrics like revenue growth, earnings per share (EPS) and margins.
Overall, the wheat market will continue its trajectory of sustained growth, driven by increasing demand for wheat products, technological advancements in agriculture, and the need for sustainable food production.
As a result, investing in wheat stocks can be a wise investment choice for those looking to diversify their portfolio.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
