Wednesday, January 12, 2011

Mosaic Shares Rally After USDA Cuts Crops Outlook


Shares of Mosaic Co. (NYSE: MOS) rallied as much as 4% as grain prices surged after the U.S. Department of Agriculture made another sharp cut in its outlook for global supplies. The USDA again revised downward its outlook for the size of last fall's corn and soybean harvest in the U.S. It made a surprise cut to its estimates for the size of the soybean crop, to 3.33 billion bushels from 3.38 billion. End-of-season inventories of corn, already expected to be at a 15-year low, were cut by more than 10% to 745 million bushels. Similarly, shares of rival Potash Corp. (NYSE: POT) rose more than 2% on speculation that higher grain priced will boost fertilizer demand. Shares of agribusiness giant Monsanto Co. (NYSE: MON) surged $2.47, or 3.41%, to $74.99 in afternoon trading. 

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