|
Mascoutah, Illinois | I was looking at a host of stocks after the recent pummeling in the stock market in the past week. I noticed Mosaic (SYMBOL: MOS) and corn prices have moved in lockstep since January 11.
Mosaic was trading at a 52 week high on January 11 at $68.28. The stock began its selloff the following day after the USDA released its report on supply and demand. Corn prices on January 11 were at their seasonal highs for the sixth time and have subsequently sold off almost $1.15 after Tuesday's thrashing in the September contract. Mosaic closed today at $39.15 which is a 52 week low for the stock. It is no coincidence as corn has been in a downtrend since the January 11 highs and Mosaic has followed. Mosaic has taken a 43% haircut while corn has taken a 26% haircut since January 11. If you notice Mosaic has moved down almost twice as quickly as corn on a percentage basis. If corn finds a bottom in the next few weeks, it will be time to pull the trigger on Mosaic. Now isn't the time to buy Mosaic, but put it on your shopping list as I believe the bottom is close at hand in the corn market.
Edited by djmcountryboy 6/30/2010 01:34
| |
|
Mosaic (MOS) and its relation to corn prices
