Hedgeye Industrials analyst Jay Van Sciver cautioned investors not to overreact to the latest ‘sky-is-falling’ drought narratives that may have been behind recent dramatic moves in commodities like corn, wheat and soybeans – and how that correlates to equipment companies like Deere ($DE)
“The funny thing about doing this for a while is that every single year I’ve covered ag and farm equipment, at some point everyone is panicked about droughts, yields or whatever it is,” Van Sciver explains in this clip from The Call @ Hedgeye. “The reality is that isn’t very often. What ends up driving crop price is policy like with ethanol, interest rates or with currency.”
Hedgeye CEO Keith McCullough responded, “I’m really at a loss for words, almost a quarter century into this, how people like Jim Cramer and these single shot CNBC-types know everything about everything with no teammates, and or experience themselves. Like I’d know what to do with Deere without Jay Van Sciver.”
Watch the full exchange above.