September 14, 2009 / 1:24 PM / 9 years ago

UPDATE 1-Citi cuts ratings on Potash Corp, Mosaic

* Cuts ratings on both companies to ‘hold’ from ‘buy’

* Sees limited fall fertilizer application window

TORONTO, Sept 14 (Reuters) - Citigroup on Monday lowered its ratings on Potash Corp of Saskatchewan POT.TO POT.N and Mosaic Co (MOS.N) to ‘hold’ from ‘buy,’ citing the likelihood of limited opportunity for fertilizer application this fall and other concerns.

Potash Corp shares fell 2.1 percent, while those of Mosaic were down 3 percent in premarket trade in New York following the rating cuts.

“Growers in the cornbelt could be harvesting the crop 2-4 weeks later than usual, limiting the fall fertilizer application window,” Citigroup analyst P.J. Juvekar said in a note to clients.

Juvekar also said distributors were not worried about securing fertilizer, given high producer inventories.

Moreover, many Corn Belt farmers are losing money with spot corn at $3.15 per bushel, which makes them hesitant to spend money, said Juvekar. (Reporting by Euan Rocha; editing by John Wallace)

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