We’ve been so caught up watching stocks soar we haven’t paid much attention to one of our favorite asset classes: commodities.

Just a few years ago Archer Daniels Midland (NYSE:ADM) was riding high on the back of the agriculture AND ethanol boom. But as soon as the credit crunch struck, both of those bull markets died and ADM’s stock tanked.

We haven’t yet seen the worst of this credit crisis, says Chris Mayer. A lack of funding is forcing farmers to reduce crop planting. And that will soon send commodity prices soaring again. Chris finds five beaten-down fertilizer and irrigation companies that will benefit as agriculture rebounds.

Martin Hutchinson in Money Morning says that over the long-term oil and agricultural commodities are likely to deflate.

This is because, once the threat posed by the US housing crisis has passed, the Federal Reserve will be forced to increase interest rates to fight inflation. Other countries will follow, which will deflate the commodities boom.

However, over the short-term, gold, whose movements are directly linked to inflation, is likely to bounce. Martin reckons a price tag of $1,500 an ounce for the yellow metal is entirely possible. He recommends two ETFs and four gold miners to profit from this situation…

Flooding in the Midwest and fears of crop damage caused corn prices to climb in Chicago for the eighth consecutive day — their biggest gain in 11 weeks. Prices are expected to hit $8 a bushel by next week.

“Corn is in trouble because of the wet spring that has drenched the midwest,” says Justice Litle in Taipan Daily.

Yesterday, the USDA said in a report that American corn output will be down significantly from last year’s estimate.

Corn is in trouble because of the wet spring that has drenched the Midwest. Yesterday, the USDA said in a report that American corn output will be down significantly from last year’s estimate.

Wheat sank to its lowest price since August last year as US farmers began harvesting what is expected to be the biggest winter grain crop in a decade, reports Bloomberg:

Production will increase 17 percent from a year earlier to 1.78 billion bushels, the most since 1998, the U.S. Department of Agriculture forecasts. About 4 percent more acres were seeded from September to November, the agency said. Wheat prices have tumbled 45 percent from a record $13.495 a bushel on Feb. 27.

Globally, corn supplies are already straining to meet demand. America is the world’s king of corn. If our crop is going to be light, that puts corn on the launch pad.

Entering a dangerous and troublesome period in financial history…the battle between the forces of inflation and deflation wages on… The Liquidation War…the coming of the Greater Depression…Cattle is no longer such a hot commodity in Argentina…what will hobble agriculture in the future?…and more!

When I was growing up, it never mattered how bad my day went or which concert I might have missed, because there would always be rice, beans, and meat on the table every night.