Stockchase Opinions

John DeGoey BMO Agriculture Commodities ZCA-T BUY Jul 12, 2012

Wants to add a full position of Global Agriculture ETF (COW-T) and 2/3 position of Agriculture Commodities (ZCA-T). Good time to buy agriculture? Having agriculture in your portfolio is always a good idea because population continues to grow.
$13.570

Stock price when the opinion was issued

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DON'T BUY
Market Vectors Agribusinesses (MOO-N) or Agriculture Commodities (ZCA-T)? This is an ETF based on agriculture commodities so it has wheat, cocoa, corn. Totally different than MOO. Leslie agriculture area but is not big on futures.
TOP PICK

A play on soft foods (corn, wheat, beans, etc.) which he thinks will be counter cyclical to the broader markets. A lot of this is going to depend on how the spring crop fares. This is currently in support right now. If you are going into this, ease into it in order to see what happens with the crops in the spring. Support is around $11.80 so if it goes below that, just try to re-enter again. Ease into it.

TOP PICK

There are several ways to participate in agriculture. You can use the futures market, which is what this does, or you can buy the stock related such as iShares (COW-T) or the US equivalent (MOO-T). The chart on this one shows a long downtrend and is mainly the soft commodities such as corn, beans, etc. The downtrend has been exasperated by excess moisture. It has recently had a nice correction period and it should rally from here.

DON'T BUY

They`ve all been getting beaten up. If you want to play that market then use this but there is greater volatility. Feed and seed companies. Not thrilled with the results.

PAST TOP PICK

(A Top Pick March 13/13. Down 14.55%.) This ETF was delisted in December.