NEW YORK (
-- What follows is the transcript of a video interview of Jim Cramer by
Debra Borchardt. The transcript has been edited for length and clarity.
TheStreet: Mosaic (MOS - Get Report) has lowered their second-quarter production outlook, Jim. People are holding off on buying their product because they're waiting for the price to come down. Should investors hold off as well?
You know, the international side of Mosaic is not good.
(POT - Get Report)
was downgraded by Cantor. I have not liked the fertilizer stocks on the short-term basis. Long-term, look, we have a lot of mouths to feed and fertilizer is a good way to be able to do it, but international, I spoke with Mosaic. They've made it clear over time that look; their raw costs are very high. They use natural gas from overseas. They don't use domestic natural gas. Very interesting to think that they didn't say anything bad about the United States.
My ultimate takeaway, is watch corn and watch soy here. They're going down. A lot of companies were supposed to be challenged by the higher price of crops and then realized that crops aren't just a summer phenomenon, and so I think the price of crops are coming down, which is very bullish.
I think that Mosaic not doing that well is a sign, frankly, that it remains a cyclical business with a secular overtone only during periods when we have famine, and these stocks are trading vehicles and we should be trading away from them right now.
Well, what is the best agriculture stock?
I'm going to say Monsanto. At one point I would have said
(DD - Get Report)
, but I think they've lost their way.
(DE - Get Report)
has moved up aggressively here, and I think that Deere should be sold. I don't think Deere belongs in the high eighties, mid to high eighties.
Alright, it sounds like you're trimming your crop stocks.
I would. I would sell Deere.
Written by Debra Borchardt in New York.
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