This morning is looking a little rough for some of the farming, agriculture, fertilizer, and potash stocks. We have seen a downgrade in the sector from UBS this morning. Potash Corp. of Saskatchewan, Inc. (NYSE: POT) and Mosaic Co. (NYSE: MOS) were both downgraded to Neutral from Buy by the analyst team at UBS today. This broad call is also going to have an impact on Market Vectors Agribusiness ETF (NYSE: MOO).
This downgrade on the fertilizer and potash sector comes on the heels of a Department of Agriculture forecast that noted U.S. farm profits are going to fall by 38% this year. The belief is that the rural spending will continue to be tight at farmers manage expenses when food prices are not as high and while the value of their underlying land is getting pinched along with traditional real estate....
Friday, August 28, 2009
Analyst Dumps Agriculture & Fertilizers (MOS, POT, MOO)
From 24/7 Wall Street: