Mosaic Deals Another Blow to Ag Stocks

After falling another 25%-plus in Thursday trading, shares of Mosaic (MOS Quote), an erstwhile highflyer in the agriculture sector, have now fallen more than 70% in less than four months. Agrium (AGU Quote) (AGU Quote) and Potash (POT Quote) have shed more than 50% in that time frame.

In terms of sheer market value erosion, Monsanto (MON Quote) wins the prize, shedding roughly $35 billion in value this summer.

Could the ag cycle have gone from scorching bull market to hibernating bear market that fast? Clearly not. Instead, unbridled investor euphoria has been replaced by extreme levels of pessimism.

Once the dust settles and investors start to look at how the next three to four years are likely to play out for these stocks, shares should claw back and move toward the midpoint of optimism and pessimism. ...