Mosaic and Potash Corp. Shares Fall Following BGC Downgrade

BGC Partners analyst Mark Gulley downgraded Potash Corp. of Saskatchewan, Inc. (NYSE: POT) and The Mosaic Company (NYSE: MOS) from Buy to Hold and lowered estimates.

Gulley commented that potash price remains under pressure due to excess supply and the lack of demand. The 2014 potash price is estimated to be $350/mt. The analyst writes that there is "nil" upside potential from current levels. Gulley's note follows Morgan Stanley's report stating that potash settling above $300 will be a "challenge."

BGC cut Potash Corp. 2014 EPS estimate from $2.33 to $2.07. The analyst also lowered Mosaic's EPS estimate from $3.00 to $2.84.

On November 13, Mark Gulley downgraded shares of Agrium Inc. (NYSE: AGU) from Buy to Hold and maintained a $95 price target. Since then, shares of Agrium have moved as low $89. Generally, POT, MOS, and AGU shares trade closely.

Today, Potash Corp. and Mosaic have been down 1.42 percent and 1.17 percent, respectively. Agrium shares have done the opposite, though, trading up almost 0.50%. Investors could speculate that there is no more downside for Agrium.