The world is still grappling with high inflation, and prices of basic food commodities like wheat have fluctuated significantly in recent years. Russia’s invasion of Ukraine -- one of the world’s top wheat producers -- has compounded the problem.
Some countries are also facing low crop yields because of droughts, floods, and other weather events. When the delivery of grains and other essentials is disrupted, wheat prices can soar.
What does it mean for investors? Owning businesses that produce wheat or service the food commodity industry could be a hedge against inflation, that insidious force that can lower the value of investment returns over time. Here’s what you need to know about wheat stocks.
Commodities
Best wheat stocks in 2026
There have been a lot of ultra-wealthy people interested in farmland. Billionaires such as Bill Gates and Jeff Bezos have reportedly been acquiring farmland in the past few years. Of course, for most investors, acquiring your own land for growing wheat or other agricultural products isn't so easy. Here are seven stocks that yield exposure to wheat and other food staples, and help with the production of one of humankind's most basic commodities:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Deere & Company (NYSE:DE) | $147.7 billion | 1.19% | Machinery |
| Archer-Daniels-Midland (NYSE:ADM) | $32.4 billion | 3.03% | Food Products |
| Bunge Global (NYSE:BG) | $22.6 billion | 2.38% | Food Products |
| Seaboard (NYSEMKT:SEB) | $5.1 billion | 0.17% | Food Products |
| MGP Ingredients (NASDAQ:MGPI) | $540.4 million | 1.89% | Beverages |
| Andersons (NASDAQ:ANDE) | $2.2 billion | 1.20% | Food and Staples Retailing |
| Adecoagro (NYSE:AGRO) | $1.2 billion | 4.01% | Food Products |
1. Deere and Co.
NYSE: DE
Key Data Points
Deere and Co. (DE +2.40%), better known as John Deere, is one of the most iconic U.S. farming companies. It manufactures tractors and other equipment, including combine harvesters.
In recent years, John Deere has been investing in technology to help with the automation of farming. Early in 2022, it unveiled a fully autonomous tractor that can go about its activity based on predefined functions while a farmer monitors its progress from a mobile device.
Given the cyclical costs of wheat and other agricultural goods, as well as a steadily growing global population that needs to be fed, adding automation to increase crop efficiency may be a big need in the coming decades.
2. Archer-Daniels-Midland
NYSE: ADM
Key Data Points
Archer-Daniels-Midland (ADM -1.01%) may not have the brand recognition John Deere does, but it is no less a giant in the agricultural industry. ADM helps manage the supply chain of food ingredients. It acquires basic commodities (including wheat), refines agricultural products into cooking ingredients, and resells and transports goods.
The company has faced significant disruption in the global food supply in the last few years, with the war in Ukraine putting further strain on supply chains. More recently, it's dealt with issues from global price declines for certain crops due to oversupply.
The company has also been working to regain investor confidence since 2024, when management announced that ADM had discovered multiple accounting errors, including improper recording of sales between different business segments within the company. Management had to issue restated financial statements and lower its profit outlook.
Supply Chain
While the impact of these accounting issues should be resolved with time, investors should watch closely as the company works to regain its growth trajectory in the coming quarters. It is still reporting earnings declines and working to manage costs.
On a more positive note, ADM is a solid dividend stock for investors looking for investment income. Given the stock's less-than-favorable performance of late, the yield has been pushed up to more than 3%.
3. Bunge
NYSE: BG
Key Data Points
4. Seaboard
NYSEMKT: SEB
Key Data Points
5. MGP Ingredients
NASDAQ: MGPI
Key Data Points
6. The Andersons
NASDAQ: ANDE
Key Data Points
7. Adecoagro
NYSE: AGRO
Key Data Points
How to choose the best wheat stocks
When choosing the best wheat stocks, it's important to understand that few companies are pure-play wheat producers. Instead, most operate across the broader agricultural value chain -- from equipment manufacturing to global processing and trading.
For instance, large, diversified firms like Archer-Daniels-Midland and Bunge manage the storage and processing of wheat into flour and food products. Companies like Deere & Company benefit when high wheat prices increase farmers' profitability, which leads to more equipment spending.
Wheat has high production costs, so look for companies with strong operating margins and high earnings per share to ensure they can handle price fluctuations. Many established agricultural stocks offer dividends that can provide investors with income during market volatility.
Be sure to focus on industry leaders with extensive global supply chains that can shift sourcing if one region suffers a poor harvest. External factors like fertilizer and fuel prices directly affect farmer profitability. A strong U.S. dollar also makes American wheat more expensive for foreign buyers, which can affect demand and prices.
Pros and cons of investing in wheat stocks
There are numerous pros and cons to consider when it comes to investing in wheat stocks, either through direct ownership of shares in companies involved in the wheat industry or indirectly through exchange-traded funds (ETFs). On the pro side, here are some points to consider:
- Wheat stocks can help diversify your portfolio since they don't necessarily mirror the movements of other asset classes like stocks and bonds. Some wheat stocks may also be exposed to other crops or business segments, further enhancing your portfolio diversification.
- Investing in wheat can potentially act as a hedge against inflation since commodity prices tend to rise during inflationary periods.
- Global population growth and increased demand for livestock feed contribute to a strong demand for wheat, potentially driving up prices and benefiting wheat-related companies.
- When demand is high or supply is constrained, the price of wheat and wheat-related stocks can increase significantly, offering the potential for substantial returns for long-term shareholders.
- Many wheat stocks are associated with well-known brands, which can make them a comfortable choice for buy-and-hold investors.
At the same time, there are also some cons to be aware of before you put cash to work in this space.
- Wheat prices are subject to volatility due to factors like weather conditions, crop yields, geopolitical events, government policies, and currency fluctuations.
- Investing in individual stocks, including wheat-related stocks, carries inherent risks and unpredictability, since the performance of a company depends on factors beyond wheat prices.
- While wheat stocks can offer potential for high returns, especially during specific periods, their performance can fluctuate depending on various market dynamics.
- Like any investment, there's a risk of losing money if the market moves against your investment or if the underlying companies perform poorly.
As always, whether you want to put cash to work in wheat stocks or other adjacent businesses, it is best to work towards building a well-diversified portfolio of 25 or more quality stocks across various sectors. That way, you can benefit from the growth of businesses in a wide range of market environments.
Related investing topics
How to invest in wheat stocks
If you want to invest in any of the wheat stocks mentioned on this list, here's the process you need to follow.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
FAQ
Investing in Wheat Stocks FAQ
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