Premarket Alert: Farmers' spending habits hit fertilizer stocks (POT, MON, IPI, CF, AGU)

Posted in General 
June 26th, 2009

Agriculture stocks are seeing early premarket selling as of 9 a.m. Eastern, after Potash Corp. (NYSE: POT) cut its second-quarter earnings guidance citing lower prices for phosphate fertilizers and deferrals of purchases by farmers seeking to save costs.

The company warned that its second-quarter earnings will be about 70 cents a share, down from expectations that it would post earnings in a range of $1.10 to $1.50 a share. Potash shares are down about 3% in heavy premarket trading.

One direct Potash competitor that also is seeing share weakness, although in light early trading, is Intrepid Potash Inc. (NYSE: IPI). Others on the watch list may include CF Industries Holdings Inc. (NYSE: CF). Agrium Inc. (NYSE: AGU), and Monsanto Co. (NYSE: MON). — Mike Tarsala

 

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