| David Penn, Contributor
7/23/2012 @ 9:41AM
Agricultural commodity price spikes have never been friends to stocks like Dean Foods (NYSE: DF) – down eight days in a row for a drop of more than 24%. But over the past few days, this selling has spread to some of the premium, 21st century grocers like Whole Foods Market (NASDAQ: WFM) and The Fresh Market(NASDAQ: TFM).
These specialty food retailers are overexposed not just to potential price volatility due to rising commodity prices, but to the potential of customers turning away from healthier, more expensive food options as the economic recovery and job growth remain tentative. This is at least as far as a growing number of traders and investors are concerned, who are getting out of these stocks in a selling frenzy that, especially in the case of Whole Foods Market, is starting to resemble a panic.