Sector Snap: Fertilizer Sector Gains

NEW YORK (AP) — Shares of fertilizer producers rose Friday as an analyst said prices of grain are set to climb, improving farmers' balance sheets and driving fertilizer demand higher next year.

In a note to investors, Citi Investment Research analyst P.J. Juvekar noted that the USDA says grain supplies are already tight, and the US planting season has been significantly delayed for corn and soybeans. Higher prices from their products will boost farmers' economics and they will be more likely to buy fertilizer, Juvekar said.

Juvekar upgraded Potash Corp. of Saskatchewan Inc. and Mosaic Corp. to "Buy" from "Hold" and Agrium Inc. to "Hold" from "Sell."

The analyst also hiked price targets and earnings estimates on all the stocks.

Any major weather event or poor crop from a major producer such as the U.S., Ukraine or Argentina could push corn prices up to $5 per bushel, Juvekar said.

Corn for July delivery closed at $4.24 a bushel on the Chicago Board of Trade Thursday.