NEW YORK (TheStreet) -- Dole Food Company (DOLE), Green Mountain Coffee Roasters (GMCR) and Fresh Del Monte Produce (FDP) are among food-related stocks that could see significant gains in the next year, according to analysts.
Although most asset classes got hammered during the recent market slump, the majority of contracts on grains and soft commodities on the Chicago Mercantile Exchange held firm, clearly indicating that this commodity sector is structurally sound and could remain firm in the long term, driven by demand from emerging markets.
Analysts at Goldman Sachs recently upgraded their forecasts for CME crop futures, saying that they expect agricultural prices to outperform the rest of the commodity complex.
Meanwhile, corn prices have more than doubled in a year, while wheat increased greater than 70%. Coffee and sugar prices soared more than 50%. Industry analysts believe that the current scenario is fueling the early stages of a soft commodity supercycle, fed by growing demand from the emerging markets.As per the International Coffee Organization (ICO), world coffee production in the current 2010/2011 crop year reached 133.3 million bags, increasing 8.2% from the prior crop year. Although top producer Brazil estimates a decline in its coffee output, the ICO believes that the impact of the decline in Brazilian production would be offset by Colombian output, after two crop years of low production. We have selected six soft commodity-related stocks that could rise from 6.6% to 41%, based on average 12-month price targets of analysts surveyed by Bloomberg. We have listed the stocks in ascending order of potential upside, based on analysts' price targets.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV