Analysts Cut Targets on Agrium, Potash; Stocks Rally on Production Cuts (AGU, POT)

Agriculture-related stocks are rallying this morning amid production cut announcements at two popular fertilizer company's, Agrium (NYSE: AU) and Potash (NYSE: POT).

Agrium announced that it has shut-in production at its Fort Saskatchewan nitrogen facility and has further curtailed production at other major nitrogen and phosphate plants in North America. As for Potash, the company announced late last night that it will reduce its '09 potash production by about 20%, starting January.

Shares of Agrium are currently about 6.3% higher to $29.24, while Potash stock is up 7.6% to $66.58.

Today's upside move comes despite several negative analyst comments on Agrium and Potash. Analysts at RBC Capital lowered their price targets on Agrium from $60 to $50 and on Potash from $175 to $145. Also, TD Newcrest cut its target on Agrium from $85 to $70.

Elsewhere in the sector:

• Mosaic (NYSE: MOS) up 6.4% to $33.98
  
• Monsanto (NYSE: MON) up 2.3% to $83.58
  
• CF industries (NYSE: CF) up 2.8% to $52.06
  
• Terra Industries (NYSE: TRA) up 6.8% to $15.00
  
• Intrepid Potash (NYSE: IPI) up 8.9% to $18.33

Agrium, Inc. produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South America.

Potash Corporation of Saskatchewan, Inc. engages in the production and sale of fertilizers, and related industrial and feed products in North America.

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