joeevan

Grain Prices: Back to the Futures

I'm adding to my AGU shares.

WSJ: Glory Days Fade for U.S. Farmers

It is peculiar that this article would appear at the same time that Seeking Alpha featured a piece titled "Agrochemical Sector a Bright Spot in Slowing Global Economy," and noted that "record U.S. farm income is forecast for 2008, which should boost farmers’ purchasing power of fertilizer, as well as the latest state-of-the-art seed varieties. In addition, fertilizer prices should remain high because of tight supplies and strong demand globally, S and P said."

Also, yesterday, the CEO of Syngenta (SYT) noted that "The sales figures we have presented today attest to the strength of our business in a turbulent global environment. The fundamental drivers for agriculture remain unchanged, with rising food and feed demand inevitably requiring increased use of agricultural technology in a context of limited land availability. Our confidence in Syngenta's near term as well as its longer term performance allows us to reaffirm our target for earnings per share* growth of more than 35 percent in 2008 and high teens in 2009."

Agrium (AGU) is currently trading near 52-week lows and with a PE of 4.5.
This is a good time to buy/add AGU.