Who benefits from spiking food prices?  Some exceptions investors should consider . . .

First floods, now a huge cyclone in Australia, the world’s 3^rd biggest producer of sugar and also a major player in wheat.  Huge winter storms in the U.S.  As the snow comes down, the price of commodities goes up.  Most food companies will have a tough time in the near-term either because they’re just not able to pass pricing through quickly enough to protect their margins – think Kellogg’s (K) or Sara Lee (SLE) – or because they’re forced to raise prices dramatically – like Hershey (HSY), Yum! Brands (YUM).

However, a few winners may be able to pass on their rising costs more readily . . . like Tyson Foods (TSN) and SmithField Foods (SFD).  Or, take Diamond Foods (DMND), who will actually benefit from lower prices thanks to recent bumper crops in nuts.

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