Last week, the potash market anxiously awaited Q4 earnings release from Potash Corporation of Saskatchewan. It was not the 2010 earnings recap that had market stakeholders holding their breath; it was Potash Corporations statements on their 2011 potash market expectations.
Analysts have already warned that extremely tight phosphate inventories could put significant constraints on supplies and further buoy phosphate prices. In some areas, analysts caution that phosphate supplies may be used up, resulting in a delay for farmers to get their hands on much needed phosphate.
It has been a wild ride for the potash market. In 2008, the price of potash soared to $1,000 per tonne. In 2009, as the recession hit farmers in the pockets, the price retreated to $350 per tonne.
By Leia Michele Toovey- Exclusive to Potash Investing News In anticipation that its 2010 potash sales will increase by 50 per cent, Russian based Belarusian Potash Co (BPC) has hiked the price it charges for the nutrient. BPC customers in Brazil and Asia can expect to pay $410 per tonne of standard grade potash, up [...]
By Leia Michele Toovey- Exclusive to Potash Investing News Despite a bleak 2009, brokerage Credit Suisse released a note that is very bullish on the 2010 outlook for potash. During the last bull-run, high crop prices and limited potash supplies drove the price of the nutrient up to US$ 1,000 per tonne, from $150. Currently, [...]
By Leia Michele Toovey-Exclusive to Potash Investing News As the recession spread across the globe, the value of crops plummeted and equity froze, forcing farmers into delaying applications of much needed fertilizer to their fields. This postponement has set the stage for the potash industry to boom. Farmers may skip using potash fertilizer for [...]
By Leia Michele Toovey- Exclusive to Potash Investing News Sluggish demand world-wide due to the global financial squeeze has left potash stockpiles at all-time highs as potash miners fail to adequately adjust prices. Farmers, especially those finding it hard to get bank financing, may not be buying as much costly fertilizer as they face lower [...]
By Leia Michele Toovey- Exclusive to Potash Investing News. Fertilizer prices are finally falling, but not enough to coax farmers into big purchases for the spring planting. The worldwide financial crisis has them rationing their use of stored inventory. The steep decrease in crop prices have left farmers with less money to purchase fertilizer, shifting [...]
The global population has more than doubled since 1950 and is expected to grow from 6.7 billion in 2008 to 9.2 billion by 2050. Unfortunately agricultural output, in particular in developing countries, is not growing at the same rate. The historical under-application of fertilizer has led to a chronic low yield performance whereby farmers in [...]
Thursday, February 3, 2011