Corn Report Will Carry Ag Stocks Higher

The impact of the president's food-for-oil plan continues with this morning's corn inventory report, which shows a smaller-than-forecast harvest. That means costs going up for everyday food for everyday people, but that's not been an issue as the ethanol boondoggle continues.

This news couldn't come at a worse time, as the Federal Reserve's beige book shows that the Fed is worried about inflation, and this is core inflation that is mandated by the administration, and it will now get worse.

Of course, from a stock point of view, this says that once again the ag complex of Deere (DE - commentary - Cramer's Take) and Bunge (BG - commentary - Cramer's Take) and Monsanto (MON - commentary - Cramer's Take) and Syngenta (SYT - commentary - Cramer's Take) and Potash (POT - commentary - Cramer's Take) and Mosaic (MOS - commentary - Cramer's Take) and Agrium (AGU - commentary - Cramer's Take) can get another lift. I am sure there will be some buyers who anticipated this number, and they will come in and take profits on the news, so maybe these stocks will be more muted in their increases, but you know that these stocks are still not done going up. Whether it be a rice shortage, a corn shortage, or a famine, the farmers just keep getting an incentive to plant, and they keep getting the money to do so.

And, of course, because we have the worst government money can buy, they get the subsidies, too.

Random musings: Lenny "Nails" Dykstra's Boeing (BA - commentary - Cramer's Take) call is looking spot-on given the Dreamliner announcement this morning.

At the time of publication, Cramer had no positions in the stocks mentioned.

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