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With soft commodity prices at record highs, is it time to invest in the sector?
Agriculture stocks are still good long-term investments, but investors should be wary of the short term, as a correction for the sector may be due, according to Alexis Dawance, fund manager at Global-Cap.
Dawance prefers smaller companies to large-cap companies like Potash [ POT 121.16 
-1.72 (-1.40%) ] and Mosaic [ MOS 58.42 -1.14 (-1.91%) ] as they have had a "tremendous ride," making shares are "pretty expensive" currently.
"We fear that these names are over-owned, therefore we prefer smaller companies who have bought some land and are doing some exploration," Dawance told "Power Lunch Europe".
Bunge [ BG 62.01 
+0.02 (+0.03%) ] is one stock Dawance likes.
It is one of the oldest grain traders in the world and was and recently acquired the international sugar trading and marketing division from Britain's Tate & Lyle, as well as buying Corn Product International [ CPO 34.37 +0.04 (+0.12%) ] , which puts it in a good position, according to Dawance.
"They have capable abilities to source the commodity, to move it, to process it. They are really a true global company and the valuation is not demanding."
Chicken producer Pilgrims Pride (PPC) [ PPC 10.61 +0.17 (+1.63%) ] is another investment opportunity, according to Dawance.
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