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What's Working? The Ag Trade!

If you’re looking for stocks that could break out – should you look at ag stocks?

Ahead of the spring planting season it looks like the ag trade is back on. Shares of Potash, Monsanto and Mosaic all closed higher despite an otherwise dismal tape.

As you may know, fertilizer and seed prices soared in early 2008 on surging demand, tight inventories and record grain prices. But the global downturn weighed on the sector forcing farmers to save money by waiting to plant for as long as possible.

However, demand may be returning to the sector. Just yesterday Potash CEO Bill Doyle said he expects fertilizer sales to pick-up momentum in April. That stands to reason – it’s nearly spring. However, he also said he anticipates very strong demand in the latter half of 2009 and through the course of 2010.

What's the trade?

In addition to the stock mentioned above I’d take a look at CF Industries , adds Pete Najarian. Hedge fund manager David Einhorn jumped into that stock; that should tell you something!




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Trader disclosure: On Feb. 19th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (FXI), (PBR), (TM); Seymour's Firm Owns (VIP); Terranova Owns (KCE), (XBI), (AMGN), (FXC), (DIS); Terranova Owns (AMGN) Puts; Terranova Owns (IBM) & (IBM) Call Spread; Finerman's Firm Owns (RIG), (MSFT), (NKE), (FL); Finerman's Firm Owns (DNA) & (DNA) Call Spreads; Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (BBT), (VNO); Najarian Owns (CELG); Najarian Owns (EEM) Call Spread, (GDX) Call Spread, (GLD) Call Spread, (MOS) Call Spread, (STI) Call Spread; Najarian Owns (AMAT) Put Spread, (CHK) Put Spread; Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (GS) Calls; Najarian Owns (GE) Puts; Najarian Owns (HPQ) Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (WFC) & (WFC) Calls

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