Ag Spikes as Heat Wave Grips, Potash (POT) Holds Gains

June 28, 2012 9:55 AM EDT
The heat wave that has been gripping parts of the central U.S. continues today and will begin to spread eastward, with temperatures in the triple digits for many locations in the central and southern Plains and Ohio Valley and in the 90s along the East Coast as far north as New York City.

Excessive Heat Warnings and Heat Advisories are in effect throughout the Plains and Midwest. Excessive Heat Watches have been issued for the mid-Atlantic for Friday

The heat wave has caused drought conditions in the Midwest, wrecking corn crops and sending agricultural futures traders into a frenzy. The heat wave has had a dramatic effect on corn prices, which have spiked over 10 percent this week. Other agricultural commodities prices, such as oaks and wheat, also traded higher this week.

PowerShares DB Agriculture (NYSE: DBA) is higher by 3.6 in the past week. Shares of fertilizer company, Potash Corp. (NYSE: POT) spiked higher by 5.38 percent in the past 5 trading sessions, and is holding onto gains, down slightly in early trading on Thursday. Seed supplier, Monsanto Co. (NYSE: MON), gained 1.84 percent in the same period.

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