Years of rising phosphate prices have pushed the market into adjustment, and increased production in the coming years is set to keep the market well supplied. But increased supply is also expected to push prices lower after the spring.
Despite the growing need for potash supply, not every potash project on slate will be a winner. But a variety of new plays can make a splash if timed well.
Potash fertilizer prices look ready to rebound as positive US economic data holds promise of record US crop planting and output.
MENA phosphate producers represent more than 80 percent of world reserves. Overrun by political risks, this region will require moderating labor and wage relations between state-run producers and a politically invigorated labour force going forward.
Cold weather in Europe and a warm winter in the US have pushed grain prices higher in past weeks as many fear losses of spring yields. Despite concerns, high commodity prices are a strong incentives for farmers to plant record acreage and increase potash purchases.
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.
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