Shares of fertilizer companies have been on the upswing recently as the recent heat wave and drought hitting the Midwest has seen corn prices skyrocket.
As farmers in the Midwest battle dying crops, fertilizer companies have a lot to gain.
According to the press release, the current drought plaguing farmers across the U.S. is the worst in 25 years.
"This will result in significant increases in prices for corn. We've seen a 38% increase since June 1 in the price of a bushel of corn,” said Tom Vilsack, U.S. Agriculture Secretary.
Shares of Potash Corp. of Saskatchewan Inc. (TSX:T.POT, Stock Forum), the world's largest fertilizer company, and Agrium Inc. (TSX:T.AGU, Stock Forum), another major player in the fertilizer industry, have seen a steady rise throughout July.
On Friday, Agrium was trading for $95.18 a share. The company has a market cap of $15 billion, based on 158 million shares outstanding. The 52-week high and low was $98.16 and $63.93 respectively.