OAO Uralkali, the world’s largest potash producer, climbed to the highest level in ten months on bets the worst U.S. drought in a half-century will increase demand for the fertilizer.
Uralkali rose 1.1 percent to 272.67 rubles by the close in Moscow, the highest level since Sept. 21 and the second day of gains. The Micex Index slumped 1.3 percent to 1,415.38, with 27 out of 30 stocks falling.
Farmers will buy more fertilizer next year as they try to recoup crops lost this year, according to Karen Ubelhart, an analyst for Bloomberg Industries.
The drought may persist in the Midwest for the rest of the growing season, the U.S. government said this week. Above- average temperatures and below-normal rainfall will continue through next week, according to meteorologist Telvent DTN.
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