The Agriculture ETF (MOO) Will See Continued Strength On Agribusiness Acquisitions

“Fueled by top components like Potash (POT), Monsanto (MON), Mosaic (MOS) and Deere (DE), the Market Vectors Agribusiness ETF (MOO) continues to gain momentum. (MOO) is a well-balanced, low-cost, tax-efficient way to gain exposure to 46 global agribusiness firms. Many of the companies in the portfolio are non-U.S. based, including some in Malaysia and Indonesia, offering investors access to rapidly growing markets that are not generally easy to tap into,” Don Dion Reports From Dion Money Management.

Dion goes on to say, “Lower costs for raw materials have also benefited many of MOO’s top components – from (POT) to (DE) – as revenues have outpaced many analysts’ expectations. Demand from developing countries like China and India should also continue benefit the high-quality agribusiness firms that line MOO’s portfolio. Recently, bidding wars have also helped to fuel MOO’s performance. Earlier this month, MOO benefited from a takeover tussle involving four of the fund’s components: Yara International, CF Industries(CF), Terra Industries (TRA) and Agrium (AGU). Eventually, CF Industries came from behind to win the battle for Terra after fellow suitor Yara announced it would not increase its $4.1 billion bid.”

“(MOS), which makes up nearly 8% of MOO’s portfolio, has also been cited as a potential  target. Firms like Cargill, Vale (VALE) and BHP (BHP) have all been rumored to have the potash firm in their sights. So, MOO continues to benefit from acquisitions, emerging-market demand and an improving global market. During the one-month period ending Mar. 24, MOO jumped 3.88%. Year to date, this agriculture ETF is up 2.67%. Perhaps most impressively, during the one-year period ending Mar. 24, MOO rallied more than 53%,” Dion Reports.

With the agriculture business booming from worldwide demand there is great reason to believe the Market Vectors Agribusiness ETF (MOO) will benefit for many years to come.  Here are some more details on the ETF including the holdings in the ETF below:

The investment ETF (MOO) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Agribusiness index. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the business of agriculture, which derive at least 50% of their total revenues from agribusiness. Such companies may include small- and medium-capitalization companies. It is nondiversified.

Holdings As of March 26, 2010

Holding Ticker Shares Market Value % net assets
Potash Corp of Saskatchewan (POT) US 1,468,525 $177,280,338.00 8.21%
Monsanto Co (MON) US 2,397,913 $170,491,614.30 7.90%
Mosaic Co/The (MOS) US 2,859,882 $169,733,996.70 7.86%
Syngenta AG (SYNN) VX 607,744 $166,076,012.72 7.69%
Wilmar International Ltd (WIL) SP 35,346,751 $166,025,026.57 7.69%
Deere & Co (DE) US 1,673,124 $101,324,389.44 4.69%
Archer-Daniels-Midland Co (ADM) US 3,280,891 $93,242,922.22 4.32%
Yara International ASA (YAR) NO 2,031,542 $85,159,542.23 3.94%
Kubota Corp (6326) JP 8,960,000 $83,360,957.20 3.86%
Agrium Inc (AGU) US 1,095,881 $77,029,475.49 3.57%
IOI Corp Bhd (IOI) MK 46,493,955 $75,733,625.75 3.51%
Brf – Brasil Foods Sa-Adr (BRFS) US 1,519,725 $75,104,809.50 3.48%
Quimica Y Minera Chil-Sp Adr (SQM) US 1,833,804 $67,649,029.56 3.13%
Bunge Ltd (BG) US 1,002,293 $63,986,385.12 2.96%
CNH Global NV (CNH) US 1,654,068 $52,682,065.80 2.44%
Tyson Foods Inc (TSN) US 2,136,023 $39,943,630.10 1.85%
China Agri-Industries Holdings Ltd (606) HK 26,896,100 $38,343,112.31 1.78%
Kuala Lumpur Kepong Bhd (KLK) MK 7,437,870 $36,704,575.88 1.70%
Golden Agri-Resources Ltd (GGR) SP 84,575,745 $32,795,650.50 1.52%
Terra Industries Inc (TRA) US 697,479 $32,056,134.84 1.49%
CF Industries Holdings Inc (CF) US 338,462 $31,534,504.54 1.46%
Astra Agro Lestari Tbk PT (AALI) IJ 10,971,876 $29,310,020.27 1.36%
Olam International Ltd (OLAM) SP 14,066,087 $26,293,521.89 1.22%
Viterra Inc (VT) CN 2,589,077 $24,371,337.93 1.13%
Smithfield Foods Inc (SFD) US 1,155,447 $23,883,089.49 1.11%
AGCO Corp (AGCO) US 644,165 $23,157,731.75 1.07%
Tate & Lyle Plc (TATE) LN 3,204,673 $22,008,107.52 1.02%
Del Monte Foods Co (DLM) US 1,380,884 $19,677,597.00 0.91%
Corn Products International Inc (CPO) US 523,219 $18,181,860.25 0.84%
Indofood Agri Resources Ltd (IFAR) SP 10,088,520 $15,559,556.66 0.72%
Nutreco Holding N.V. (NUO) NA 243,824 $15,119,878.23 0.70%
Intrepid Potash Inc (IPI) US 522,815 $15,213,916.50 0.70%
Nufarm Ltd (NUF) AU 1,519,784 $12,029,476.40 0.56%
Cosan Ltd (CZZ) US 1,214,809 $11,261,279.43 0.52%
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT (LSIP) IJ 9,507,202 $9,937,585.20 0.46%
Maple Leaf Foods Inc (MFI) CN 799,685 $8,095,221.33 0.38%
Glanbia Plc (GLB) LN 2,045,329 $8,299,826.10 0.38%
GrainCorp Ltd (GNC) AU 1,381,773 $7,824,298.00 0.36%
Darling International Inc (DAR) US 572,908 $5,161,901.08 0.24%
Chiquita Brands International Inc (CQB) US 312,267 $5,186,754.87 0.24%
Cresud SACIF y A (CRESY) US 367,970 $5,055,907.80 0.23%
AWB Ltd (AWB) AU 5,694,512 $4,601,562.72 0.21%
Andersons Inc/The (ANDE) US 127,503 $4,176,998.28 0.19%
Lindsay Corp (LNN) US 86,923 $3,618,604.49 0.17%
Futuris Corp Ltd (FCL) AU 2,906,171 $3,402,033.47 0.16%
Cash   1,067,477 $1,067,505.68 0.05%
Golden Agri-Resources-Cw12 (GGRW)1 SP 4,714,418 $403,027.83 0.02%

Chart for Market Vectors Agribusiness ETF (MOO)

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