Bunge Limited (NYSE: BG) will acquire Corn Products (NYSE: CPO) for $56 in BG stock. CPO overall option implied volatility of 44 is near its 26-week average of 41 according to Track Data, suggesting slightly larger price movement.

Brigham Exploration (NASDAQ: BEXP), a natural gas company, closed at $15.85. BEXP July option implied volatility of 86 is above its 26-week average of 71 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

When natural disasters happen, there are always some companies that can turn the circumstances in their favor. Recent downpours in the Midwest provided such an opportunity as they came not only with high damages for people in the area, but also with floods for crop production, causing even higher agricultural commodity prices. The rise in corn and soybeans prices could easily lead to an increased demand for seeds, agricultural equipment, and fertilizers. BusinessWeek suggests some big names to invest in that could offer us the advantages we are looking for.

One such company is Archer Daniels Midland (NYSE: ADM), which could also benefit from higher ethanol prices, after purchasing seven businesses in 2007. Bunge Limited (NYSE: BG) is also amid possible winners, having forecast better-than-expected fertilizer earnings. Shell eggs producer Cal-Maine Foods (NASDAQ: CALM) is also on the selected list; the company saw its shares climb 15% year to date, and has just revealed a new dividend payout policy.

Another important name is Mosaic Co. (NYSE: MOS), whose stock prices have surged 70% so far this year. BusinessWeek cites Mosaic as being able to benefit from higher prices for fertilizer and potash. Following the same logic, the article points out potash provider Potash Corp. of Saskatchewan (NYSE: POT) and fertilizer distributor CF Industries Holdings (NYSE: CF), which should be able to take advantage of the weak dollar and higher sales prices.

Dealing with agriculture on an international basis requires that a firm understand global trends in demographics, economics and cultural development. A White Plains, New York firm is one of the most highly respected practitioners of the art.

Bunge Limited (NYSE: BG) is an integrated agribusiness, fertilizer and food products concern. The company is a leading global processor of soybeans and other grains, a leading provider of products and services to the South American farming community and a major U.S. food processor. Some of Bunge's agribusiness products are used for industrial purposes, including renewable fuels like biodiesel. Archer-Daniels-Midland (NYSE: ADM) is a major competitor.

The stock has been a solid performer over the past six weeks, rising 27% on word of such developments as a big upward revision in the 2007 USDA farm income estimate, a BG "buy" initiation at Matrix, and Bunge's acquisition of the Agroindustrial Santa Juliana ethanol production facility in Brazil. The news has kept BG shares cycling through a positive trading channel. Further definition of the upside move is expected to coincide with the run-up in key agricultural commodity prices.

Brokers recommend the stock with four "buys" and five "holds." The BG P/E ratio (21.63), Price to Sales ratio (0.38), Price to Book ratio (2.28), Price to Cash Flow ratio (12.13), Sales Growth rate (65.22%), EPS Growth rate (394.17%) and Revenue per Employee ($1.454M) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 77% of the outstanding shares. Over the past 52 weeks, the stock has traded between $56.71 and $105.82. A stop-loss of $90 looks good here. Note that the firm is expected to release third quarter results in late October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Success in international agriculture requires that a company be firmly grounded in global demographics, economics and cultural development. One of the arena's most highly respected names works from White Plains, New York.

Bunge Limited (NYSE: BG) is an integrated agribusiness, fertilizer and food products concern. The company is a leading global processor of soybeans and other grains, a leading provider of products and services to the South American farming community and a major U.S. food processor. Some of Bunge's agribusiness products are used for industrial purposes, including renewable fuels like biodiesel. Archer Daniels Midland Co. (NYSE: ADM) is a major competitor.

The firm pleased investors last week, when it reported Q2 EPS of $1.05 and revenues of $9.92 billion. Analysts had expected 90 cents and $6.88 billion. Management also guided FY07 EPS to $4.63-$4.79, versus consensus of $4.35. In support of the positive outlook, the CEO cited expectations for good global harvests, the acquisition of an oilseed processing plant in Romania and expected demand from the biofuels industry. BMO Capital Markets subsequently reiterated its "outperform" rating on the shares and boosted its price target to $103. The news popped the shares out of an early July "cup" into the late July "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle."

Brokers recommend the stock with three "buys" and six "holds." The BG P/E ratio (18.93), Price to Sales ratio (0.33), Price to Book ratio (1.77), Price to Cash Flow ratio (10.61), Sales Growth rate (65.22%), EPS Growth rate (394.17%) and Revenue per Employee ($1.454M) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 73% of the outstanding shares. Over the past 52 weeks, the stock has traded between $55.25 and $94.63. A stop-loss of $79 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Dealing with agriculture on an international basis requires that a firm understand global trends in demographics, economics and cultural development. One of the highly respected corporate practitioners of the art was founded in Amsterdam nearly 200 years ago, but now works from White Plains, New York.

Bunge Limited (NYSE:BG) is an integrated agribusiness, fertilizer and food products concern. The company is a leading global processor of soybeans and other grains, a leading provider of products and services to the South American farming community and a major U.S. food processor. Some of Bunge's agribusiness products are used for industrial purposes, including renewable fuels like biodiesel.

The firm pleased investors last month, when it reported Q4 EPS of $1.52 and revenues of $7.68 billion. Analysts had expected $1.44 and $7.22 billion. Management also guided FY07 EPS to $4.33-$4.48, versus consensus of $4.33. The CFO cited expectations for improved South American business, the activation of new oilseed processing assets and high global commodity prices in support of the positive outlook. The news kept BG shares cycling through a positive four month trading channel. The price is currently consolidating near the base of that channel, where oversold Stochastic, CCI and MACD technical parameters suggest the potential for a rise back toward the top.

Brokers recommend the shares with three "buys" and five "holds." Analysts see a 17% growth rate, through the next year. The BG P/E ratio (18.72), Price to Sales ratio (0.36), Price to Book ratio (1.68), Price to Cash Flow ratio (10.81), Sales Growth rate (13.77%) and EPS Growth rate (87.65%) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 70% of the outstanding shares. Over the past 52 weeks, the stock has traded between $47.25 and $85.68. A stop-loss of $69.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.