Canadian PotashCorp shares fall more than $10

11 August 2008 22:25  [Source: ICIS news]

HOUSTON (ICIS news)--Potash Corporation of Saskatchewan (PotashCorp) saw its share prices take a hit on Monday, led by a further decline in corn prices and concerns over the company’s production during a labour strike.

Shares of PotashCorp closes at $160.60 (€107.60) on the New York Stock Exchange, down $10.91 or more than 6%. The closing price represents a drop of 34% from its record high of $241.62, set less than two months ago.

Corn futures for September delivery settled down a penny to $4.97/bushel on the Chicago Board of Trade. Corn was trading at nearly $8/bushel in early July.

In addition, a strike continued at three of the company’s potash fertilizer plants in Canada’s Saskatchewan province.

Unionised workers demanding higher wages began picketing on Thursday outside the company’s 2m tonne/year plant in Allan, 800,000 tonne/year plant in Cory and 300,000 tonne/year plant in Patience Lake.

Three other North American fertilizer companies - which all experienced record stock prices on 18 June, as corn was nearing its peak - were also hit on Monday as the commodity sell-off continued into this week.

CF Industries lost $9.32, or 6.92%, to close at $125.33/share, down from a record of $172.99.

Mosaic lost $8.07, or 7.73%, to close at $96.35/share, a 41% drop from its record of $163.25.

Agrium fell $3.93, or 5.06%, to close at $74.557 - down from a record $113.88/share.

An analyst said last week a price bubble surrounding corn had “popped” and falling crude oil prices were draining other commodities.

($1 = €0.67)

For more on PotashCorp’s Cory plant, visit ICIS plants and projects
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By: David Rosen
713-525-2653

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