Reuters reported Agrium Potash Corp raised their Q2 earnings forecast from $4.18 to $4.78 a share to $5.40 to $5.50 per share, as share prices climbed 3.5 percent higher at and closed at $95.77 on the NYSE, due to excellent crop input results.
As quoted in the report:
The fertilizer sector has been one of the few bright spots for investors in recent weeks, as drought conditions in many key corn growing areas in the United States have led to a surge in crop prices. Although the drought may dent near-term fertilizer sales, the spike in corn prices bodes well for nutrient demand ahead of next year’s planting season in the United States – the world’s largest corn grower and a huge buyer of fertilizers.
Lazard Capital analyst, Edlain Rodriguez, commented:
The stage is set for a solid fall application and a strong spring as distributors and dealers should be incentivized to restock their lean inventories and farmers will look to maximize income.