Shares of St. Louis based agricultural products company Monsanto (MON) have been beaten down in 2010. Year-to-date, the shares have lost over 26%, but it appears that a change of sentiment has taken place over the last month with the stock surging 33%.

Monsanto is a great way to play the theme of higher agricultural commodity prices. The price of wheat has surged an incredible 88% since June 9 as fears about supply, as a result of a severe drought in Russia, have gripped the market. Earlier this month, corn futures staged a similar, albeit less dramatic, rally.

On Tuesday, July 27, E.I. du Pont de Nemours & Company (DD) reported a blowout quarterly earnings report. The company earned $1.159 billion, or $1.26 per share, compared to $417 million, or $0.46 per share, in the year ago period. On an adjusted basis, net income attributable to the company was $1.1 billion or $1.17 per share, versus $558 million or $0.61 per share, in last year's corresponding quarter. This compared to Wall Street estimates of $0.93 per share. It was a tremendous beat and highlighted the company's earnings momentum.

Quarterly net sales surged 26% to $8.62 billion compared to $6.86 billion in the second quarter of 2009. This came in well ahead of analysts' expectations of $8.23 billion. Furthermore, emerging market sales increased 32% in the quarter and the company said that all segments had double-digit sales increases.

DuPont also raised its forward-looking guidance. The company now expects fiscal 2010 adjusted earnings per share in a range between $2.90 and $3.05. This is well ahead of current Wall Street earnings estimates which are pegged at $2.64.