Much of the agricultural news has been overshadowed by the interesting story related to BHP's (NYSE:BHP) bid of Potash Corp. (NYSE:POT), but the real story is how the lower estimated corn yields will have on nitrogen more than anything, as that's the main fertilizer used on corn. Agrium Inc. (NYSE:AGU) and Viterra Inc. (TSE:VT) could be among the stronger beneficiaries of the trend.
Some analysts are starting to realize that phosphate and potash producers may not benefit near as much as people looking at the sector in a general way may realize.
Corn prices are expected to have support over $5 a bushel over the next 12 months and maybe longer, and that means corn farmers will have more capital to use to invest in nitrogen.
Agrium is set to surpass analysts' expectations, and Viterra has a strong export portfolio which should benefit them in relationship to nitrogen.
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