Another article from Bloomberg:Sector Snap: Grains rally boosts...

Another article from Bloomberg:

Sector Snap: Grains rally boosts fertilizer makers



NEW YORK

Shares of fertilizer makers rose Thursday after the U.S. Department of Agriculture cut its forecast for worldwide wheat production, sparking a rally in grain prices.

Higher income for farmers should prompt them to spend more on fertilizer. Meanwhile, there are more plants in the U.S. that will need fertilizer. Production of corn and soybeans in the U.S. is expected to hit records this year.

Fertilizer maker CF Industries Holdings said earlier this month when reporting second quarter results that it further expects corn planting in 2011 to surpass the record 2010 acreage.

CF shares gained $2.20, or 2.7 percent, to $84.13 in afternoon trading Thursday.

On Thursday, the USDA said it expected U.S. corn production of 13.4 billion bushels in 2010 and soybean production of 3.43 billion bushels, with both topping the record volumes of 2009.

Wheat production is expected to grow 2 percent to 2.26 billion bushels in the U.S., but the USDA cut its global wheat forecast for 2010-11 by 2.3 percent to 645.7 million metric tons after the damage inflicted by severe drought in Russia, heavy rains in Canada and bad weather in northern Europe.

U.S. farmers are expected to fill in the gap with heavier exports, boosting their incomes.

Wheat prices jumped 18.25 cents, or 2.5 percent, to settle at $7.4375 a bushel Thursday. Corn prices rose 10.75, or 2.6 percent, to $4.2175 a bushel, and soybeans gained 13 cents, or 1.3 percent, to $10.285 a bushel.

Shares of Potash Corp. of Saskatchewan Inc., the world's largest producer of potash fertilizer, rose $1.07, or 4.6 percent, to $24.13.

Intrepid Potash Inc. added $1.14, or 4.9 percent, to $24.20, while shares of Mosaic Co. gained $1.85, or 3.7 percent, to $51.27.

Agribusiness company Bunge Ltd. rose 86 cents, or 1.6 percent, to $54.07