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.
Despite debt burdens and weak macroeconomics that threaten to derail the global economic recovery; the potash and phosphate markets are positioned to post a strong fourth quarter.
According to market experts high food prices are likely to persist for the next few years. However, high food prices are good news for potash prices, because as the price that farmers can sell their crops for rises, so does their cash flow to spend on fertilizer.
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.
Concerns about adverse weather in western Canada and Russia are sending grain futures on a rally. This is good news for diammonium phosphate and other phosphate based fertilizer prices.
By Leia Michele Toovey- Exclusive to Potash Investing News For the past few weeks, I have finally been able to share good news about potash, and now, even more signs are pointing towards a revival in the market. The latest news, this Monday, Canpotex, the marketing arm for North American potash producers, finally inked a [...]
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