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Global Ag Boom Or Bust?

Monday, 5 Oct 2009 | 5:39 PM ET

After the bell, fertilizer maker Mosaic said its fiscal first-quarter profit fell 91 percent as demand for its products wilted. Investors poured over not only profits, but results that showed the firm had to slash prices.

As you may know bullish investors believe that ag is a long-term buy as a play on the emerging middle class around the world. They say as more people make their way out of poverty one of the first things they’ll do is eat better.

However bearish investors are cautious of the space. They say the bounty of crops being harvested this year will push prices lower making farmers less likely to plant as much next year.

Awaiting Monsanto's Results
Monsanto is set to report earnings later this week, with Peter Schiff, Euro Pacific Capital and the Fast Money team.

Should you play the dip or run for the hills?

We turned to perma-bull Peter Schiff for some interesting insights. The bearish president of Euro Pacific Capital has buys in this space.

I own Potash and a Norwegian company called Yara International, Schiff reveals. I think the name of the game is to find out what China is going to buy and buy it first. I expect China will enjoy a higher standard of living and start consuming more. Much more.

Ag stocks and fertilizer names such as those mentioned above feed into the growing China consumer and that’s where I think investors should be.

And Walmart is a sell because they won’t be able to import cheap goods from China anymore, adds Schiff




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Trader disclosure: On October 5, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (MMT); Terranova Owns (NOV), (JPM); Terranova Owns Dec. Gold Futures; Terranova Owns March Sugar Futures; Terranova Owns Crude Futures; Terranova Is Short (CCL), (WYNN), (GRMN); Najarian Owns (C) Calls; Najarian Owns (BRCD) Call Spread; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) & Short (JPM) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (TEVA); Najarian Owns (ORCL) & Short (ORCL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread

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