Agco reported Q3 revenues and profits today far above last year's level and analyst estimates, and guided full-year earnings estimates higher. I take this as confirmation of my assertion that higher food prices will lead to stronger sales of farm equipment. Agco is up 42% since my discussion here in August, CNH is up 35%. I plan to take positions in both sometime in the next 1-2 weeks. I am not jumping into the trade as still think equity markets will trend lower in response to weaker economic news this week, and this may allow me to get a slightly better price. That said, I may set a stop buy in case I am wrong and the market jumps higher.
MARKET POSITION: EQUITIES - SHORT (6 units); GOLD - LONG (1 unit)
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