The food supply chain is a mess thanks to the Ukraine war and continued sanctions on Russian-produced goods. The latest focus on wheat prices has clearly emphasized the growing threat to threat to the food chain. This strain has directly focused on companies that could either benefit from the supply constraints or help fill the coffers. Believe it or not, several penny stocks are on this list. Today, we watch a handful of agriculture & farming stocks to watch as the Russia-Ukraine conflict continues to stress the food supply.
Farming & Agriculture Penny Stocks To Watch
- AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI)
- Arcadia Biosciences (NASDAQ: RKDA)
- Marrone Bio Innovations (NASDAQ: MBII)
- S&W Seed Company (NASDAQ: SANW)
Best Penny Stocks To Buy Now
Micro-trends play an essential role in daily action when it comes to penny stocks. Whether it’s the latest surge in non-fungible token stocks or even something like short squeeze stocks, the things driving prices for stocks under $5 are generally much different from broader market trends. This granularity has given rise to massive breakouts in some little-known names. Case in point, look at companies like Tesla over the last few weeks.
While the last two sessions were much more bullish in line with the broader market, the general trend was sideways. However, what has become one of the most popular penny stocks this month, Mullen Automotive (NASDAQ: MULN), has been on fire. So, where most electric vehicle stocks were quiet, this tiny company’s shares surged over 440% in 2 weeks. A recent trend in the market has focused on agriculture and farming stocks in light of food supply chain constraints due to Russian sanctions.
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI)
Shares of AgriFORCE Growing have climbed steadily since the start of the month. However, since significant sanctions put things like wheat and corn under pressure, AGRI stock has been red hot. The company develops solutions and intellectual property for sustainable cultivation and crop processing. In particular, AgriFORCE aims at delivering plant-based foods to its customers.
Earlier this month, AgriFORCE took a step forward in expanding through a new acquisition. The company bought Deroose Plants, a plant material supplier, for a cool $69 million. This latest purchase is expected to boost AgriFORCE’s tissue culture and plant cultivation processes for high-value crops.
One of the more unique things about AgriFORCE is that it utilizes technologies including AI and automation to grow and propagate its crops. Next week could be an important one for AGRI stock. The company presents at the Maxim Group Virtual Growth Conference on March 28th.
Arcadia Biosciences (NASDAQ: RKDA)
Another plant-based food company, Arcadia Biosciences Inc., has climbed during the past few weeks. Its focus is on developing a wide range of health & wellness-focused products, including GoodWheats specialty wheat ingredients, Zola coconut water, Soul Spring bath and body products, Sonova pet food supplements, ProVault natural pain relief formulas, and Saavy Naturals body care products.
A recent PatentScope document was published this month regarding the company’s “Methods of Increasing Fiber In A Wheat Grain.” When sanctions on grain are pushing prices sky-high, global governments are already making moves to adjust. The Indian Government recently implemented measures to make India a leading exporter of high-quality wheat. Given the speculation surrounding this latest Patent Scope document, it could have become a focal point for RKDA traders.
Marrone Bio Innovations (NASDAQ: MBII)
Another AgTech company, Marrone Bio, is in the spotlight. It doesn’t take long to see why based on the penny stock’s chart. Other than the excitement stemming from global supply chain shortages, Marrone has come into focus during a period where it is closing on a $236 million merger deal.
The company will combine with Bioceres Crop Solutions to establish a bio nutrition and seed care products company for developing biological crop protection and plant health solutions. In light of the latest focus on sustainability, Bioceres and Marrone will operate in 46 countries following the all-stock deal. Commenting on the agreement, Bioceres Chief Executive Officer Federico Trucco explained, “By combining our current commercialized products and pipelines, we will be in a position to serve all major agriculture input categories with low environmental impact, highly efficacious, biological based solutions.”
With the transaction expected to close during the 3rd quarter, the mix of AgTech momentum and industry speculation could be something to keep in mind right now.
S&W Seed Company (NASDAQ: SANW)
A topic of discussion right now is what happens to the 90-day food supply with Russian exports cut off from the rest of the world? How can crops “quickly” grow, and who will do the growing? In this light, it might not be a bad idea to have seed stocks on the radar either. S&W Seed is one of the names that have recently popped during the second half of the month. The company offers proprietary seeds supplying a wide range of crop products.
Everything from pasture seeds to hybrid sunflower & wheat, the company is leveraging its R&D to breed its portfolio of products. Heading into March, S&W released its latest round of earnings results. Management seemed optimistic based on 2021’s achievements without mentioning any potential that could arise from the new food chain issues.
CEO Mark Wong explained, “The December ending quarter was characterized by our traditional seasonality, which saw the majority of sales consisting of lower margin international alfalfa seed sales. Operationally, we remain focused on preparing for the key upcoming selling season, which we expect will consist of sales of our high margin sorghum products in the U.S., while also restructuring key elements of the company to improve our financial results going forward. We look forward to the second half of fiscal 2022 as we remain on track to achieve our previously stated revenue expectations for the year and improve overall gross margins.”
Is The AgTech Trend Your Friend?
Different trends like the one discussed today tend to involve plenty of speculation. With that, it’s essential to understand how to trade penny stocks the right way and manage risk. I say that because when speculation is a primary driver, that can create volatile conditions for both bullish and bearish moves. Given the latest data on the global food supply chain issues, farming and agriculture stocks could be a topic of discussion this month.
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