* Goldman upgrades Potash Corp; UBS upgrades Agrium

* Potash Corp shares up 3 pct, Agrium up 3.5 pct

TORONTO, Dec 7 (Reuters) - Shares of the world's largest fertilizer maker, Potash Corp of Saskatchewan (POT.TO), along with those of its smaller Canadian rival, Agrium Inc (AGU.TO), rose on Monday, after analysts raised their ratings on both companies.

Potash Corp's shares were up 3 percent at C$127.65 in morning trade on the Toronto Stock Exchange after Goldman Sachs raised its rating on the company's stock to "buy" from "neutral", citing an improved demand outlook for potash in 2010, both in the United States and overseas.

UBS raised its rating on Agrium to "buy" from "neutral", citing improving fertilizer demand trends.

Agrium shares were up 3.5 percent at C$63.10 on the Toronto Stock Exchange.