JPMorgan downgraded Archer Daniels (ADM), which processes agricultural commodities, to Underweight, its equivalent of a sell rating. The firm believes that the election results will have a negative impact on the agricultural sector.

POTENTIAL IMPACT OF ELECTION: The stronger U.S. dollar relative to South American currencies in the wake of the election could reduce the competitiveness of American exports in South America, and any changes to trade deals could also negatively impact U.S. agricultural exports, wrote JPMorgan analyst Ann Duignan. Two of the leading candidates to become the next agriculture secretary, former Texas governor Rick Perry and dairy executive Mike McCloskey, are not "particularly sympathetic" to policies meant to boost the prices of crops, including ethanol, the analyst stated. Archer Daniel Midlands' corn processing business could be hurt by lower ethanol demand, harming the company's ability to sell its ethanol dry mill assets, Duignan wrote. Additionally, Archer Daniel's oilseeds business could be hurt by the expected expiration of the biodiesel tax incentive at the end of 2016, according to Duignan. High supplies of soy meal and low prices of competing feeds could also hurt Archer Daniels, the analyst believes.

PRICE TARGET: Duignan cut her price target on Archer Daniels to $36 from $42.

OTHERS TO WATCH: Deere (DE), AGCO (AGCO), and Caterpillar (CAT) are among the companies that manufacture agricultural equipment.

PRICE ACTION: In early trading, Archer Daniels fell 6% to $42.47.