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.
Potash producers are dealing with new market fundamentals, as global markets recover from the recession.
The fight to hold ownership of Potash Corporation of Saskatchewan is heating up as CEO Bill Doyle announces that several parties have expressed interest in bidding for the global potash giant.
China, a country keen on ensuring it has the raw materials necessary to sustain its voracious appetite for growth, has cried foul play over BHP Billiton’s bid for Potash Corporation of Saskatchewan.
The past week has been an eventful one for the potash sector following BHP Billiton's (NYSE:BHP) unsolicited bid to takeover Potash Corporation of Saskatchewan (NYSE:POT).
For years, Potash Corp. of Saskatchewan (NYSE:POT) has held the lion share of the potash market. However, change is on the horizon.
The second-half results of the major potash producers have been streaming in over the past few weeks. An important signpost to the health of the sector, all companies reported that sales volumes increased rapidly in this half, especially when compared to the second half of 2009.
The potash market is primarily controlled by Canpotex and Belarusian Potash Company (BPC). Canpotex is the marketing arm for North American potash producers, responsible for negotiating the long term contracts with potash consumers such as China and India.
Potash producers continue to struggle in today’s economic climate. Analysts are confident in the long-term health of the sector, but in the short-term pressure will remain.
Potash shares plunged this week; as risk adverse investors abandoned their positions in the agricultural sector.
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