The Russia-Ukraine crisis is boosting agriculture stocks…
With the invasion of Ukraine, the U.S., European Union (EU), and other allies implemented a series of sanctions against Russia.
This added to existing supply-chain concerns, as Russia and Ukraine are two of the largest exporters of wheat, corn, and other agricultural products.
It also drove a major rise in soft commodity prices worldwide. In fact, wheat futures hit their highest levels since 2018. Meanwhile, corn saw its greatest price gain in over a decade.
These increases fueled a 3.6% rise in the Invesco DB Agriculture Fund (DBA) over the past month. They also helped boost REX American Resources (REX) by 7.8% over the same period.
However, the developments have been an even green boon for fertilizer suppliers. This includes Mosaic Company (MOS).
Mosaic is a Fortune 500 firm that mines phosphate and potash. It’s also the largest U.S. producer of fertilizer based on these elements.
And it has not only been a top performer through the Russia-Ukraine crisis, but it has also seen its share value rise 93% over the past six months.
Even with supply-chain disruptions from COVID-19 and Russia’s invasion of Ukraine, Mosaic has managed to report consistent financial results.
In its February 22 results, the company reported earnings per share of $1.95 compared with the estimated $1.97. Mosaic’s revenue was $3.84 billion, slightly below the expected $3.9 billion.
While these figures were lower than Wall Street’s forecasts, they still represented growth for the company. And with pricing momentum – as well as an outperformance from agriculture stocks – Mosaic’s earnings and revenue may further rise.
What I just said to Pentagon officials
Hi, my name is Joel Litman.
A few weeks ago, I was in Washington, D.C.
I was asked to speak at the Pentagon.
It was my fifth time being summoned to the most powerful and secretive building on the planet in the past year.
Why was I there?
Because top military brass wanted my forensic accounting insights on the stock market. (I've also been asked to brief folks recently at the FBI, the U.S. Marine Corp War College, and more.)
I spoke at the Pentagon about the recent market declines, of course.
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In fact, I bet you've never even heard of it!
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You see… these are all digital technologies, and although most investors don't realize it, they are yesterday's news.
I am 100% convinced the digital revolution as we have known it is about to get steamrolled by something even bigger – which is just now hitting an inflection point.
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P.S. I almost forgot to tell you…
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