Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Field of corn (Tim Boyle/2006 Getty Images)
Field of corn (Tim Boyle/2006 Getty Images)

Ag stocks grow like beanstalks Add to ...

The chief executive of Potash Corp. of Saskatchewan Inc. may have been trying to help out existing shareholders with his statement on Thursday that the value of the company "far exceeds" $170 (U.S.) a share - or $40 a share more than what BHP Billiton Ltd. is offering. But his words don't compare to the impact of corn prices.

Agriculture stocks were strong on Friday, with big gains for not only Potash Corp., but also Agrium Inc. , CF Industries Holdings Inc. and Monsanto Co. Part of the reason: Corn futures jumped more than 6 per cent - the biggest one-day gain in more than three months - after the U.S. Department of Agriculture cut the size of its corn crop forecast. Higher corn prices mean more activity in the sector, which should drive demand for fertilizer products.

As well, Reuters reported that Rio Tinto Group was interested in the fertilizer industry, leading to speculation that another blue-chip mining firm might be scouting for acquisition targets.

 
  • POT-N
  • BHP-N
  • AGU-T
  • CF-N
  • MON-N
  • RTP-N
Live Discussion of POT on StockTwits
More Discussion on POT-N
Live Discussion of BHP on StockTwits
More Discussion on BHP-N
Live Discussion of AGU on StockTwits
More Discussion on AGU-T
Live Discussion of CF on StockTwits
More Discussion on CF-N
Live Discussion of MON on StockTwits
More Discussion on MON-N
Live Discussion of RTP on StockTwits
More Discussion on RTP-N

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories