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By Daniella D'Alimonte

With continued high prices, inventory drops and ongoing demand from emerging global markets, despite the speculations of a slowdown in that sense, potash remains a market contender.

For the last few days as Europe's stocks have been on a downward slide, companies involved in fertilizer and potash haven't seemed to noticed.

K+S AG, the largest European potash producer, climbed US$6.15, or 5.7 percent, to US$114.42, its highest this month.

Norway-based Yara International ASA, the world's largest producer of fertilizer, is up 3.7 per cent to US$59.

Israel Chemicals, after announcing ^[2] a staggering fivefold net income increase from last years second quarter, rose over three per cent or US$0.57 to US$17.15 per share.

Negative prospects for the U.S market have had some effect on the TSX. However, energy and raw materials producers haven't been hit as drastically as other commodities. Daily and even monthly ups and downs can be taken too literally.

"The market has failed to recognize that demand for grains rarely cycle... and has shown little historical correlation with economic activity,"wrote Brian Yu, an analyst at Citigroup Global Markets, in a note to clients, as quoted ^[3] in the Financial Post. "The last time we checked, fertilizers and grains are not industrial metals."

Yu also wrote that fertilizer will not be as effected as metals, oil and gas by any global growth concerns.

Athabasca Potash (TSX: API) is currently up almost 8 per cent or US$0.35 to US$4.85. The company recently appointed ^[4] James Davidson as its chief financial officer. Davidson, who holds 28 years of experience in chartered accounting, will replace Gary Billingsley who left the company.

MagIndustries (TSX: MAA), noted ^[5] as one of the most actively traded companies on Canadian stock markets this week, has also been on the rise due to potash. It jumped US$0.09 to close at US$1.67 August 18 and continuing up another 15 per cent to US$1.96 August 20.

Potash Corporation of Saskatchewan (TSX: POT) shares have picked up slightly over the last few days with an over US$0.06 increase per share since August 15. It currently sits around US$186 per share.

However, the company has taken a slight dip throughout the summer as nearly 500 of its workers are demanding better contracts and are striking until a consensus can been reached. A Potash Corp. spokesperson recently ^[6] told Canwest that the strikes could soon affect shipments to industrial customers. These shipments account for about five per cent of the company's sales.

Atacama Minerals Corp. (TSX: AAM) has remained fairly steady over the last week, hovering around US$0.95 per share.

It recently closed ^[7] its private placement on a brokered and non-brokered basis. In total, 50,025,000 common shares were sold at US$1 each. The gross proceeds, after 5 per cent fees on a portion of the US$50,025,000, will be used towards developing the company's nitrate fertilizer operations as well as for general working capital purposes, according to its press release.

After spiking at over US$2 per share near the beginning of June, Raytec Metals Corp. (TSX: RAY) is now sitting at around US$0.65 per share.

The company has announced ^[8] the formation of an advisory board to successfully exploit and commercialize the company's potash mines in Saskatchewan. It has already been permitted to explore 91,549 acres of land, and has 198,720 acres still pending.

Minnesota-based Mosaic Company, which mines, manufactures, markets, and distributes fertilizer globally, is up over US$1.06 per share after dropping to a low it hasn't seen since the end of May.