Monday, October 25, 2010

An Easy Trade on Rising Commodity Prices

Commodity prices are surging. But rather than recommending a pure commodity play for this week's trade, I'm intrigued by a stock that not only benefits from strong commodity prices, but also more profits for farmers.

And with farmers seeing fatter profits from their crops, many are taking the money and putting it into new farm equipment.

According to the Association of Equipment Manufacturers, September sales of row-crop tractors increased by +46.9% from August, while four-wheel drive tractor sales rose +20.5%.

Because of this, shares of Deere (NYSE: DE) -- the world's largest manufacturer of lawn and farm equipment -- are surging. (more)

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