Adding to the bad news is a forecast that US corn stockpiles will reach a 16-year low this summer. Before the unusually hot and dry weather became a factor, the US Department of Agriculture was expecting a record harvest for this year and doubling of US stockpiles by next year. That prediction is now in jeopardy, and corn prices keep rising.
Aside from raising commodity prices, though, a weak harvest typically means that fertilizer company stocks get a boost. CF Industries Holdings Inc. (NYSE: CF) is up more than 4.75% today, Potash Corp. of Saskatchewan Inc. (NYSE: POT) is up 5.3%, The Mosaic Co. (NYSE: MOS) is up 4.4%, Agrium Inc. (NYSE: AGU) is up about 4.3%, and Syngenta AG (NYSE: SYT) is up 3.8%.
Other fertilizer makers including Monsanto Co. (NYSE: MON) and Intrepid Potash Inc. (NYSE: IPI) are up around 2%, but trail the others for different reasons. Monsanto’s fertilizer business does not drive the company, and Intrepid is still too illiquid.
The Teucrium Corn Fund (AMEX: CORN) is also up about 4% today, at $38.52 in a 52-week range of $35.23-$50.69.
Paul Ausick
Top Gaining Stocks
Top Losing Stocks