Potash shares are seeing a bump Wednesday as the

Potash shares are seeing a bump Wednesday as the heat wave in the U.S. damages corn crops and raises the price of the American staple. Fertilizer is historically linked to values of corn because farmers use more fertilizer to increase crop yields.

 

Shares of Potash Corp. of Saskatchewan Inc. ( TSX:T.POT , Stock Forum ),  the world’s largest fertilizer producer, rose 1.68% to a new monthly high of $46.54 a share. The company has a market cap of $40 billion, based on $859 million shares outstanding. The 52-week high and low was $59.45 and $38.31 respectively.

 

Agrium Inc. ( TSX:T.AGU , Stock Forum ), another major player in the fertilizer industry, saw its share price rise 1.46% to $92.69 a share. The company has a market cap of $14.6 billion, based on $158 million shares outstanding. The 52-week high and low was $93.56 and $63.93 respectively.

 

Corn prices spiked to a 3-month high after corn condition ratings fell 5% last week. This is the worst rating for this calendar week since 1988.

 

Potash production is a major Saskatchewan industry, and many analysts believe it will lead to a boom known as the ‘pink gold rush’. The once ‘have not’ province is already benefiting from the 10 mines that currently reside in the prairies