Fertiliser makers' shares up, corn output likely down

Publish time: 27th June, 2012      Source: www.efeedlink.com
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June 27, 2012



Fertiliser makers' shares up, corn output likely down




As an expected drop in corn production this summer could boost higher demand for crop nutrients in the next planting season, shares of fertiliser makers including CF Industries Holdings Inc and Terra Nitrogen Co LP rose on Tuesday (June 26).



Weekly crop data, released by the USDA late on Monday (June 25), rated US corn as 56% good to excellent as of Sunday (June 24), down seven percentage points from a week earlier and well below a 61% average estimate in a Reuters poll.



Corn ratings have now fallen for three straight weeks, dampening expectations for a bumper crop this autumn. The fall in corn ratings pushed up corn futures as much as 2.8% on Tuesday to its highest level in more than seven months.



"I believe that the USDA will have no choice but to lower their yield and production forecast for the year on the back of what we have seen," Paradigm Capital analyst Spencer Churchill said.



CF shares rose more than 4% to US$178.65, while Terra jumped 5% to US$215. The S&P 1500 Fertilisers & Agric Chem Sub-Industry Index was up 1.15% at US$718.55. Shares of Potash Corp, the world's largest fertiliser maker by capacity, were up 3.5% at CAD43.75 (US$42.7) on the Toronto Stock Exchange.