Last week, the Canadian government said it would block BHP Billiton’s (New York symbol BHP) hostile, $38.6-billion U.S. takeover bid for Potash Corp. of Saskatchewan (New York and Toronto symbol POT).

However, under the Investment Canada Act, which governs foreign takeovers of Canadian companies, BHP now has 30 days to modify its offer so that it is a “net benefit” to Canada.

In light of the federal government’s decision, we updated our buy/sell/hold advice in last week’s Successful Investor and Wall Street Stock Forecaster hotlines. We cover Potash Corp. in The Successful Investor and BHP in Wall Street Stock Forecaster.

(You can get our very latest analysis, including buy/sell/hold advice, on BHP Billiton, Potash Corp. and three other agricultural investments free in our new special report, “Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand.” Click here to download your free copy right away.)

Potash Corp. continues to trade above the $130.00 U.S.-a-share that BHP is offering. That suggests investors expect a higher bid for the company, either from another buyer or an altered offer from BHP.

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Long-term outlook for agricultural prices — including potash stocks — looks bright

BHP Billiton is now reconsidering its options in light of the federal government’s decision. We’ll continue to keep you updated on the takeover bid in our TSI Network Daily Updates.

Regardless of the takeover bid’s outcome, the long-term outlook for agricultural prices and potash stocks remains bright. That’s mainly because rising incomes in developing countries will continue to fuel food demand. That will prompt farmers to use more fertilizer as they increase crop yields.

However, we expect commodity prices to remain volatile in the short term. In “Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand,” we give you all the advice and information you need to profit from the long-term trend toward higher agricultural prices with less risk.

As a member of TSI Network, you may have already seen “Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand.” If you haven’t yet read this free report, click here to download your copy today.