Potash production remains stagnant as Potash Corp and Uralkali cull output in response to low farmer purchasing. However, short-term prospects look slightly positive as producers are certain global demand will pick up.
North America is an important player in phosphate ore production and refinement. With rising food prices, declining arable land and persistent emerging market demand for phosphate-based fertilizers, it will remain an important component in the phosphate game.
As junior potash producers prepare to bring production online, a new report suggests they face volatility as supply floods the market.
The CDN $15.4 billion class action suit against the federal government is just the latest in the fallout of the Canadian Wheat Bard dissolution. Farmers continue to operate despite the legal uncertainty surrounding the law.
After closing out 2011 on a low, many are hopeful 2012 will be a year for potash and phosphate producers. But despite strong long-term fundamentals, the uncertainties of 2012 appear unlikely to offer a quick turn around in the value of potash and phosphate prices or company values.
2011 came in as a disappointment to potash and phosphate investors, who saw record prices, weak supplies and undervalued producer share prices.
Stonegate Agricom CEO Mark Ashcroft spoke about his company’s start, its current strategy, and the fundamentals of the phosphate market.
India’s fertilizer cooperative major IFFCO said it will reduce potash imports by 35 percent in 2011-12 following Uralkali, Russia’s largest potash miner refusal to lower potash prices.
India is pushing potash and phosphate suppliers to lower fertilizer prices, citing that a weakening currency and climbing potash and phosphate prices are pushing Indian farmers out of the market.
In an interview with Potash Investing News, Gary Deathe from Encanto Potash commented on the nuances of the potash industry as a whole, and those that are unique to Saskatchewan.
Thursday, February 2, 2012