CF and Terra expect annual cost synergies of up to $135 million, mostly from the elimination of overlapping corporate functions, transport and distribution savings, and from greater economies of scale.

This merger also takes Agrium Inc. (NYSE: AGU) out of the CF offer process.  Interestingly enough, Agrium shares are up over 6% at $71.06 today.  With a market cap north of $11 billion, maybe Agrium will look elsewhere.

Potash Corp shares are up 6.2% at $124.17, which is up over 25% from the post-earnings initial reaction in January.

We always look for an ETF transaction as well in a sector.  The Market Vectors Agribusiness ETF (NYSE: MOO) is up 1.7% at $45.43 this morning.

There is one notion here that needs to be addressed.  The market fundamentals have finally caught up.  It seems that we have for quarters endured poor earnings and lower guidance.  Yet Potash Corp. shares have a 52-week low of less than $75.00.  So we have seen a greater than 66% rise and today was the first bit of god news actually coming from the company rather than from outside sources.

It won’t be surprising at all if we start to see at least some profit taking.

JON C. OGG