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cow-mooUBS Investment Research (UBS) downgraded two top agriculture companies Mosaic Co (MOS) and Potash Corp (POT) to Neutral from Buy on Friday. This comes after the Department of Agriculture says profits for U.S. farmers will plunge more than expected this year, dropping 38 percent from 2008 as the recession erodes demand for crops, livestock and dairy products.

These downgrades put pressure on the Market Vectors Agribusiness ETF (MOO) which holds top stakes in the two companies. The ETF (MOO) primarily invests in equity securities of U.S. and foreign companies primarily engaged in the business of agriculture. The ETF has enjoyed nice gains since its November 08 low.

We have included a list of the top holdings within the ETF:

TOP 10 HOLDINGS (MOO) ( 60.41% OF TOTAL ASSETS)
CompanySymbol% Assets
ARCHER DANIELS MDLND(ADM)5.78
DEERE CO(DE)4.85
Komatsu Ltd.N/A4.55
Kubota CorporationN/A4.54
MONSANTO COMPANY(MON)6.08
POTASH CP SASKATCHEW(POT)8.82
SYNGENTA AG ADS(SYT)7.8
MOSAIC COMPANY (THE)(MOS)7.6
Wilmar(F34.SI)5.67
Yara International(YAR)4.72

Here is a look at a what the ETF has done in the past year below:

Chart for Market Vectors Agribusiness ETF (<a href='http://seekingalpha.com/symbol/moo' title='Market Vectors Agribusiness ETF'>MOO</a>)

Disclosure: No positions

Source: Market Vectors Agribusiness ETF Takes a Hit on UBS Downgrades