TheStreet.com's Jim Cramer says not even the collapse of ethanol can touch the planting renaissance we're seeing.The agriculture bull market had been linked to ethanol. Turns out that ethanol is only one piece of the puzzle. What we are seeing for everything from fertilizer to farm equipment to seeds is that there are so many uses and calls on crops that we are having a planting renaissance that hasn't been seen in years.
We have an amazing moment in ag: we are supply-constrained for everything. Fertilizer demand is far exceeding supply, so you get an Agrium (NYSE: AGU) (Cramer's Take) buying a UAP (NASDAQ: UAPH) (Cramer's Take) -- and Agrium goes up.
Fewer players, tighter supply, no new plants coming on to speak of -- this is an amazing moment.
Deere (NYSE: DE) (Cramer's Take) is a dominant company and one of the great exporters. A weak dollar is nirvana.
Monsanto (NYSE: MON) (Cramer's Take), which I feel I like have been behind forever -- like Deere, remains the oil service stock of the future. Because the seeds that produce a plant with more oil are like Saudi Arabian reserves.
These companies are also like biotechs, because it is all genetic engineering at this point.
This bull market is totally intact, even as ethanol has collapsed.
It's an exciting and rewarding time for the ags ... and it isn't over. Just read one fertilizer company conference call transcript and you will know exactly what I mean.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an advisor to the company's CEO. At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.
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Reader Comments (Page 1 of 1)
12-04-2007 @ 3:47PM
william lindblad said...
Ag grows well when properly watered. If you take a look at our currrent water resources and drought conditions you may have a change of thought. Austrailia and a good portion of the U.S. have severe water loss due to insufficient rainfall. Fact, and can easily be confirmed.
12-07-2007 @ 7:33AM
rw said...
what happens to my present calpine(CPNLQ)stock when they get out of bankruptcy and get relisted as CPN? is my cpnlq stock changed to cpn or does it have to be sold before?