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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 116.93 
+0.00 (+0.00%) ] and Mosaic [ MOS 59.93 +0.00 (+0.00%) ] 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 60.94 +0.00 (+0.00%) ] 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 35.29 +0.00 (+0.00%) ] , 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 9.91 +0.00 (+0.00%) ] is another investment opportunity, according to Dawance.
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