Posted by Daniela Pylypczak, Commodity HQ on September 24, 2012 5:10 pm

For years, investors have been touting the lucrative opportunities that can be found in the agricultural sector. Legendary investor Jim Rogers is perhaps best known for his love of this industry, as he believes that agricultural prices are still depressed and that the current ‘commodity supercycle’ still has another 10 to 15 years to go before it runs out. And given the insatiable demand from rising Asian nations, as well as rapid population growth in the near future, the winds appear to be at the backs of various agricultural commodities and their producers for years to come. For those who have a bullish outlook on the agricultural industry, we outline five of the biggest agribusiness companies by market cap.

Monsanto Co. (MON)

Avg Vol: 3.0 million

This company is home to a market cap of $48.5 billion and trades approximately 3 million times a day. Monsanto is relative newcomer to the agricultural chemicals industry, but since its founding in 2000 it has become one of investors’ top picks in the industry. Headquartered in St Louis, Monsanto’s operations are split into two segments: seeds and genomics, and agricultural productivity. The company produces a wide variety of seeds including corn, soybean, canola and cotton. In addition, Monsanto develops biotechnology traits to help farmers control insects and weeds as well as produces several different herbicides. The stock took a hefty tumble in late 2008, and since then has struggled to make up lost ground. MON does however boast an EPS of 4.00 and currently provides a relatively attractive 1.7% dividend yield.

Potash Corp. of Saskatchewan, Inc. (POT)

Avg Vol: 6.1 million

A Canadian firm, Potash Corp. of Saskatchewan is one of that largest producers and sellers of fertilizers and industrial and feed products in the United States and Canada. Like many stocks on this list, POT suffered major losses during the financial crisis in 2008 with its share price tumbling over 60%. Since then, the stock has struggled to find a definitive direction with 2012 proving to be a no easier year for the company. From a fundamental standpoint, POT is not as attractive as MON with its slightly lower EPS and dividend yield. In terms of liquidity however, POT dominates as its shares exchange hands roughly 6 million times a day [see also Invest Like Jim Rogers With These Three Agriculture Stocks ].

Syngenta AG (SYT)

Quick Stats as of (9/21/2012)

Avg Vol: 189,000

With a total market cap of $33.7 billion, SYT comes in third place on the list. Headquartered in Switzerland, this firm has its hand in nearly every corner of the agricultural chemicals market, producing and marketing a wide range of products designed to enhance crop yields and food quality worldwide. After losing more than half of its value in 2008, the stock managed to climb even high than its pre-recession highs; currently SYT is up over 22% year-to-date. In comparison to other stocks on this list however, Syngenta’s average daily trading volume is significantly lower with only 189,000 shares exchanging hands a day.

Deere & Company (DE)

Quick Stats as of (9/21/2012)

Avg Vol: 4.3 million

This company is involved in yet another segment of the agricultural space, providing products and services for agriculture and forestry worldwide. The farm machinery giant is home to a market cap of over $32.5 billion, and its shares trade roughly 4.3 million times a day. Founded in 1837 in Illinois, the company has flourished, growing to one of the most well-known and respected names in the industry. Despite taking a big hit in 2009, DE has managed to stay in positive territory for the past two years, hitting its all time high in March of 2011. Taking a closer look at the stock reveals a juicy dividend yield of 2.3% and an appealing EPS of 7.49.

Archer Daniels Midland Company (ADM)

Quick Stats as of (9/21/2012)

Daniela Pylypczak Source: Commodity HQ