Sugar or Corn? Where to invest your money

Posted Apr 3rd 2007 5:50AM by Zac Bissonnette
Filed under: Industry, Archer-Daniels-Midland (ADM)

It's been quite a run for Archer-Daniels-Midland (NYSE: ADM) and Corn Products International (NYSE: CPO) these past few years; they have benefited from all the buzz around ethanol, and the corresponding rise in corn prices. But where corn syrup was once a cheap alternative to sugar, it may not be anymore. Just as companies like Coca Cola and PepsiCo switched from cane sugar to high fructose corn syrup years ago because of rising sugar prices, they may now be switching back to sugar. This would probably be a victory for health advocates, who have long criticized high fructose corn syrup, and many point to it as one of the many factors involved in the obesity epidemic, particularly in children who consume soft drinks.

If you're interested in investing in sugar stocks, whose companies will prosper if there is a move away from corn syrup, take a look at this list from John Markman at MSN Money.

Tags: Corn, Sugar