Washington — Fertilizer industry stock prices have turned around in recent weeks as corn prices have rebounded and drought threatens the 14.8 billion bushel corn crop earlier projected by the USDA (GM May 14, p. 13). Fertilizer industry executives warned early on that USDA’s calculations representing 166 bushels per acre were too optimistic and were assuming the best of weather and overall growing conditions (GM May 21, p. 14). In the meantime, most major public fertilizer companies have seen their stock values sag and/or the analyst ratings go down and then rebound, as the corn crop has become stressed. PotashCorp CEO Bill Doyle said last week that the 166 bushels per acre estimate was completely out of the question. He also said that there is a disproportionate amount of attention placed on corn. While corn does use more nutrients overall than other major crops, he said that only 14 percent of potash goes on corn, leaving 86 percent for other crops. Back to corn, Doyle said the next few weeks are crucial for the crop as it enters the pollination stage, and that two-thirds of the Cornbelt needs rain. Doyle added that you do not harvest the crop in April or June, and that a lot of things can happen in the meantime.
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