MOO’s favorable response to rumors of a Monsanto/Syngenta marriage is obviously important, but even more so when remembering that ETF barely budged last year when media outlets reported Norway’s Yara International (OTC: YARIY) and CF Industries (NYSE: CF) were in merger talks. Those stocks currently combine for 6% of MOO’s weight.
With natural gas prices still low, MOO is arguably home to a few other potential takeover targets. North American-based makers of nitrogen fertilizer, several of which are found among MOO’s 56-stock roster, make for attractive acquisition targets because of proximity to natural gas, a key ingredient in the production of nitrogen-based crop nutrients. [Rumor Doesn’t Boost Agribusiness ETF]
Additionally, materials stocks and other cyclical sectors are delivering upside to investors as markets anticipate higher U.S. interest rates. The materials sector is consider a late cycle, cyclical sector and those groups historically thrive in rising rate environments.
Market Vectors Agribusiness ETF
