Agribusiness ETF Soars On BHP’s Potash Play

Although equity markets have been under pressure for some time now thanks to weak levels of growth and high unemployment, some industries have been surging higher and seem to be well on the way to recovery. With a weakening dollar and bulging world populations, the agribusiness sector has been in focus in recent weeks thanks to the wheat crisis in Europe and declining corn yields across much of North America. This trend reversal, which comes after almost two years of weakness in commodity prices, has spurred one of the world’s largest mining companies, BHP Billiton (BHP), to make a nearly $40 billion offer for the world’s largest potash maker, the Potash Corp of Saskatchewan (POT). The offer of $130/share, which represented a 16% premium over the company’s Monday close, was swiftly rejected by Potash, who called the offer “grossly inadequate.” This news sent shares of POT skyrocketing higher, up more than [...] Click here to read the original article on ETFdb.com. Related Stories: Potash Boosts MOO, PAGG Russian Wheat Crisis: Great News For Agribusiness ETFs? Agribusiness ETFs Head-To-Head: MOO vs. PAGG