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Broad Weakness Lets Me Take Another Bite

This ag play's valuation just gets better and better.
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Deere (DE) is down 1.6% today, which is about double the decline of the market. I added to my position yesterday after my restrictions were lifted; I am a huge believer in the agricultural story, as witnessed by the strength in the last few days of Monsanto (MON) , which acts as a partner to Deere. The valuation is good as the stock is off about 10% since the company reported earnings. The weakness is likely due to some profit-taking from yesterday (as well as the overall market weakness), and I am going to buy another 500 shares after this Alert goes out to all of you.

The FDA released weekly export data on commodity prices yesterday. Corn sales were up 11% and soybean sales were up 22% week over week. Higher prices of these commodities help fertilizer and farm equipment companies -- this news was likely responsible for the strong move in the groups yesterday. Now, I do not want to get caught up in weekly numbers because I really own this for the long-term positive trends in the ag cycle, but these numbers were very positive and hard to ignore.

The cash receipts of the U.S. farmer are still very strong, and the story is very much intact. At $81, the stock is a buy. After my purchase I will own around 4.4% of the stock in my portfolio.

Regards,

Jim Cramer

DISCLOSURE: At the time of publication, Cramer was long DE.

Send email to james.cramer@thestreet.com.