Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Weak Crop Prices Weigh On SLC Agricola

Weak crop prices are music to the ears of BRF SA (NYSE:BRFS) shareholders, but quite another matter for companies like SLC Agricola (OTCPK:SLCJY) and Brasilagro (NYSE:LND). Although the majority of SLC Agricola's value stems from buying undeveloped land and turning it into much more valuable developed land, weak prices are nevertheless bad for near-term sentiment and results. Without the leverage to sugar and ethanol of Adecoagro (NYSE:AGRO) and the leverage to Argentina of Cresud (NASDAQ:CRESY) (and to some extent Adecoagro), SLC Agricola has been left behind this year but still offers some appealing value for the future.

The Second Quarter Saw Tougher Conditions

SLC Agricola is due to report earnings...

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