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At the same time, this creates enormous opportunities for large Ag franchises

12:13 [Comment From Steve Hansen]/b>

In the Canadian midstream landscape, we currently like Alliance Grain Traders, and GLG Lifetech

12:14 [Comment From Steve Hansen]/b>

Viterra also stands to benefit enormously, although the valuation is a bit high at the moment in our view.

12:14 [Comment From Steve Hansen]/b>

The upstream Fert enterprises also stand to benefit handsomely (Potash corp, Agrium, etc)

12:14 [Comment From Steve Hansen]/b>

Hope that helps.

12:15 Darcy Keith - Thanks Steve, interesting. Just as a follow up on Viterra....some analyst reports I've read and wrote about suggest some nice upside for the company if the Tories go forward with breaking up the Canadian Wheat Board monopoly. What is your take on this?

12:15 Darcy Keith - Here's a recent story on this matter:

12:16 Darcy Keith - http://www.theglobeandmail.com/globe-investor/investment-ideas/features/eye-on-equities/big-upside-seen-for-viterra-if-wheat-board-monopoly-broken/article2028440/

12:16 [Comment From Steve Hansen]/b>

Yes, a highly controversial subject, but a move that seems to make sense, and one where Viterra would stand to benefit materially.

12:17 [Comment From Steve Hansen]/b>

The company stands to benefit in several manners, but the principal avenuie is through higher volume throughput.

12:18 Darcy Keith - Here's a question from Rod on Agrium. Perhaps you could elaborate a bit on your forecasts for the company?

12:18 [Comment From rod sorbo ]/b>

Good Morning, what does Steve and Raymond James feel about Agrium ?

12:18 [Comment From Steve Hansen]/b>

The way the system works at the moment is that the CWB, which has a monopoly on purchasing regulated grains from farmers in western Canada, sprinkles the volumes around to all different sizes of company's, irrespective of their cost position.

12:19 [Comment From Steve Hansen]/b>

Just to finish my last though: Under an unregulated system, where farmers have the right to sell their crops to whomever they want, they are far more likely to send their crops through the larger, most efficient operators (i.e. lower priced)...thus Viterra wins.....

12:20 [Comment From Steve Hansen]/b>

On Agrium, the outlook is very bright

12:20 [Comment From Steve Hansen]/b>

Margins at the moment are very , very attractive for the firm, particularly in light of the subdued gas prices we are seeing in N.America

12:20 [Comment From Steve Hansen]/b>

And demand meanwhile, continues to be robust. This is a very attractive combination.

12:21 [Comment From Steve Hansen]/b>

A similar thesis can be made on the demand side for potash producers globally, including Canada's own bellweather POT

12:21 Darcy Keith - A related question:

12:21 [Comment From Bobby ]/b>

What's your take on Potash?

12:21 [Comment From Steve Hansen]/b>

Both of these firms boast very attractive earnings growth profiles going foward.

12:22 [Comment From Steve Hansen]/b>

On the macro front, we have seen significant moves on the potash front, with BPC recently increasing granular spot potash prices to $550/mt

12:23 [Comment From Steve Hansen]/b>

Potash corp, as one of the worlds largest exporters of potash, stands to benefit from this rising price trend, which is really being dirven by the rich crop pricing environment seen globally

12:23 [Comment From Steve Hansen]/b>

Recent reports of poor plantings in several reagions of the world, for example, have been stoking wheat and grain prices globally.

12:24 [Comment From Steve Hansen]/b>

Drought, flooding, pest/disease....they all seem to be more regular occurences of late.

12:24 [Comment From Steve Hansen]/b>

And as supply is constrained, prices shoot upwards, which heavily incentivizes farmers to apply nutrients

12:25 [Comment From Steve Hansen]/b>

Hope that helps

12:25 Darcy Keith - Thanks Steve. Here's a related question:

12:25 [Comment From Guest ]/b>

What junior potash producer you see gaining more in mid term?

12:27 [Comment From Steve Hansen]/b>

Unfortuntely, my views in that arena are pretty limited....as the stocks tend to be driven more by drill holes and resource estimates...which is outside my area of expertise.

12:27 [Comment From Steve Hansen]/b>

That being said, most will benefit from the rising price trend I described earlier.

12:28 [Comment From Joe ]/b>

Hello Darcy and Steve what is your outlook on Sherritt

12:28 [Comment From Steve Hansen]/b>

Another mining story (Nickel, Cuba, etc.). Limited expertise in that segment. Apologies.

12:29 [Comment From Steve Hansen]/b>

Railroads, Airlines, Agriculture, Heavy Equipment, Aerospace, Chemicals all tend to be my sweet spots

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