Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AgFeed Industries
So what: If my assumption is correct that AgFeed is simply riding the excitement in the rest of the ag world today, then there may be reason for concern with today's share pop. AgFeed's two primary businesses are developing animal nutrition products and hog production. If the USDA's announcement today has any effect on AgFeed, it would likely be negative as higher corn prices would increase the company's hog-raising costs and it could also reduce farmer demand for hog feed.
Now what: If your interest is in making the most of today's USDA announcement, then I'd skip AgFeed and head for one of the companies that's more likely to benefit from the lower-than-expected harvest. CF Industries
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