Potash Corp. of Saskatchewan (POT: sentiment, chart, options) was hit with a price-target cut this morning, but the agricultural firm is mildly higher in early trading. The positive momentum seems to be based on comments made yesterday by POT -- the Canadian firm said late Wednesday that it expects a "powerful rebound" in crop prices next year, sparked by tight global grain supply-and-demand fundamentals. Additionally, Potash Corp. predicted that it will attain a gross margin record in 2009.

Today, Scotia shaved its price target on POT from C$150 to C$130. Further price-target cuts are a likely prospect during the short term; Thomson Financial reports that the average 12-month price target on the shares is $115.98, a premium of 120% to yesterday's closing price.

However, traders today are shrugging off Scotia's cautious comment and focusing on POT's optimistic predictions for 2009. The stock is up 1.7% at last check, though it hasn't rallied high enough to challenge stiff resistance from its 10-week moving average. This sharply descending trendline has pushed the shares lower since July.