Money world

PLYMOUTH, Minn.–Shares of potash maker Mosaic Co. jumped more than 10 per cent yesterday after fiscal third-quarter profit leaped more than tenfold, thanks to higher prices.

The stock rose $10.55 (U.S.) to close at $113.49 on the New York Stock Exchange as the quarterly results also topped Wall Street expectations.

The company’s strong results also helped send Canadian potash and fertilizer companies higher on the Toronto Stock Exchange yesterday.

Shares in Saskatchewan-based Potash Corp. rose $3.90 (Canadian), or more than 2 per cent, to $172.57 on the Toronto Stock Exchange. Feed and fertilizer company Agrium Inc. jumped $3.26, or almost 5 per cent, to $70.01. Migao Corp., a Chinese-based specialty potash fertilizer producer that trades on the TSX, rose 35 cents, or almost 5 per cent, to $7.40.

Goldman Sachs analyst Edlain Rodriguez forecast even higher prices for potash because of strong international demand for food, animal feed and fuel.

"With strong demand in the international markets, more discipline from global producers, solid agricultural commodity prices and extremely tight inventories, global prices should continue moving higher," Rodriguez wrote in a client note bad credit payday loans.

Rodriguez forecast higher earnings in the next two years and advised investors to buy the stock.

Pricing for potash, a fertilizer, has been supported by factors that include rising demand for ethanol, a fuel made from corn.

The company also announced it plans to expand its potash operations in Saskatchewan, raising annual capacity to mine the fertilizer component to 15.1 million tonnes.

Mosaic, headquartered in Plymouth, Minn., said the expansion is a response to "continuing robust global demand for potash."

"We believe the global demand and supply fundamentals support this growth in our capacity and will allow us to fulfil our growing customer needs," said president and chief executive officer Jim Prokopanko.

Expansions at mines near Esterhazy, Belle Plaine and Colonsay are expected to take place over the next 12 years, with first production coming on line in 2009.

The Canadian Press

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