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Australian minerals giant BHP Billiton (NYSE: BHP) failed to take over Potash
Corp. (NYSE: POT) with a bid of $130 a share.
The failed bid pushed shares nearly 30% higher, raising Potash Corp’s market
cap to $42 billion – or $6 billion more than the offer from BHP.
Potash is the world’s largest fertilizer company, and this failed takeover
buoyed share prices throughout the fertilizer sector.
Agrium Inc (NYSE: AGU) jumped over 5% today, and Mosaic Co. (NYSE: MOS) saw
10% gains.
This takeover bid falls on the heels of higher wheat, soybeans and corn
prices – the three most commonly grown crops in the United States.
And legendary hedge fund manager and commodity investor Jim Rogers says that
agriculture prices are going to continue to rise: “We’re going to have much,
much higher prices over the next few years…”
Already this year, wheat prices have doubled, soybean prices are up 20% in
the last two months month alone, and in the past five years corn has more
than doubled in price. Much of these increases are due to drought and
wildfires in Russia, which recently stopped all export of wheat – but other
commodities are on the rise as well: oil, gold, silver, coal – it seems like
the prices of commodities are finally catching up with the world’s
appetite.
To take advantage of this surge in commodity prices, Chief Financial
Strategist Ian Wyatt has put together a special report on his three favorite
commodity ETFs – including an ETF dedicated to agriculture stocks.
You can find out the names of these ETFs by clicking
on this link and following the instructions.