CNBC reported the rise in the prices of fertilizer companies’ shares due to a shrinking corn crop, indicating that fertilizers will be needed to boost the crop.
As quoted in the report:
Shares of Mosaic increased 17 cents to $54.92 in afternoon trading. Potash Corp. of Saskatchewan Inc.’s shares rose 23 cents to $44.17. CF Industries Holdings Inc.’s shares gained $1.61 to $192.58.
Don Carson of Susquehanna Financial Group noted:
Bad news for harvests is good news for fertilizer makers though, as demand will surge as farmers nurture crops in the fall. He also said reports of potassium-deficient soils in the Midwest, where the bulk of the corn is grown, should drive up demand for potash, one type of fertilizer.