May 13, 2009
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RELATED TICKERS: POT
Currently only $103
Potash Corp. Tgt Raised To $150 From $110 By RBC
Full details from Briefing at 9:23am
RBC raises POT to $150 after U.S. Farm Data released this morning pointed to rising Farm Exports:
Potash tgt increased to $150 at RBC following USDA supply/demand est release (100.87 ) : RBC notes yesterday, the USDA released its world agricultural supply and demand ests for 2009/10. With respect to global grain inventories, the USDA expects global grain supply and demand to remain fairly balanced in 2009/10. The USDA expects U.S. corn yields to increase to 155.4 bushels per acre in 2009/10, which would be the second-highest yield in history. This seems optimistic given reported cutbacks in fertilizer applications last fall and this spring and reduced usage of other inputs such as chemicals. Regardless, the USDA forecasts still suggest that corn ending stocks-to-use ratios will be close to historical low levels in 2009/10. Firm believes this is positive for future corn prices and investor sentiment towards the fertilizer sector. Firm increases their tgt to $150 from $110 to better reflect their current outlook for potash prices.