Ag Stocks Lifted Off Today — But 30% of Florida’s Major Crops Sustained Damages

Today was the knee-jerk trade, which is why you should’ve taken profits, or closed out any positions that stood to benefit from a weaker Irma. In the coming days and weeks to come, we will begin to get a better idea what the storm really did, in terms of damage to property and Florida’s agriculture.

According to the Commodity Weather Group, Florida’s citrus crop might’ve sustained damages up to 20%. Moreover, the all important sugar crop, which Florida makes up half of US production, might’ve taken a 10% hit, or 5% of overall US production.

Worse than that, the grapefruit crop, breakfast of grandfathers everywhere, stands to take a 30% hit — thanks to 80mph winds and at a time when the crop simply wasn’t ready to be picked.

During today’s session, ag stocks took off, as optimism set in. The worst case scenario didn’t pan out, so shares of ALCO, LMNR, SQM, IPI, AVD, MOS, UAN and POT took off.

I have no sense or special insight into this industry, but can only hope and pray that sugar costs spiral out of control — forcing the great and evil Pepsi to buyout FIZZ, whose fashionable and delicious La Croix beverages consist of zero grams of sugar — just sparkling and refreshing water with the essence of all natural fruit juices.