N America fertilizer stocks fall on corn, strike

08 August 2008 22:09  [Source: ICIS news]

HOUSTON (ICIS news)--Shares of some of North America’s biggest fertilizer companies slipped on Friday, forced down by a drop in corn prices and the resumption of a strike at three plants of Potash Corporation of Saskatchewan (PotashCorp).

PotashCorp’s stock dipped to $169/share before closing at $171.51 (€111.48) on the New York Stock Exchange (NYSE), down $6.88, or nearly 4%, on the day. This was 29% lower than the company’s all-time high of $241.62/share, set less than two months ago on 19 June.

“As the corn values come down, the profitability on everything comes down” for fertilizers, said analyst Don Roose of Iowa-based US Commodities.

Corn futures for September delivery settled at $4.98/bushel, below $5/bushel for the first time since February.

Meanwhile, about 500 workers at three PotashCorp plants in Canada’s Saskatchewan province began picketing facilities on Thursday in Cory, Allan and Patience Lake, ceasing work as they protest for higher pay.

Mosaic, PotashCorp’s biggest competitor, shed $6.32, or almost 6% to close at $104.42/share.

CF Industries lost $5.71, or 4%, to close at $134.65, and Agrium slipped $3.68, or more than 4%, to close at 78.45%.

($1 = €0.65)

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By: David Rosen
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