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Motley Fool Global Gains / GGS: Potash Corp.
|Subject: Rising crop prices bode well for Potash Corp.||Date: 7/4/2012 7:00 PM|
|Author: Starrob||Number: 38 of 47|
"Crop prices are hitting their highest levels all year as a wave of hot, dry weather strikes the U.S. corn belt. John Hughes, an analyst at Desjardins Securities, wrote that corn prices just posted their largest eight-day increase in three-and-a-half years, reaching US$6.75 a bushel.
This is a very positive development for the fertilizer industry, and shares of Potash Corp. of Saskatchewan Inc. and its rivals have jumped in recent days.
Mr. Hughes noted that July is the key pollination period for corn in the United States, and with hot weather expected to continue in the near term, yields should be impacted. He expects the U.S. Department of Agriculture to reduce yield expectations to between 150 and 155 bushels per acre, down from 166 currently."
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