Intrepid Potash Q2 Profit Beats Estimates
Reuters reported that increased potash demand boosted profits for Intrepid Potash (NYSE:IPI).
Reuters reported that increased potash demand boosted profits for Intrepid Potash (NYSE:IPI).
Canpotex and India have finally come to a six-month deal in which India will pay, at least at the onset, $470 per tonne including freight, for potash, approximately the same rate that China is paying.
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.
Potash is primarily used as a fertilizer, and with a ballooning global population and shrinking arable land, demand for fertilizers such as potash is poised to increase. Exploration and discovery of new deposits is crucial in meeting future potash demand.
Motley Fool reported on the outlook for Intrepid Potash (NYSE:IPI).
Potash is commercially mined through two methods, conventional underground mining and solution mining techniques. Solution mining offers a few advantages compared to conventional underground mining including lower up-front capital cost and a shorter ramp-up time.
Reuters reported that sales for Intrepid Potash's (NYSE:IPI) were lower than in previous quarters, but potash prices were higher.
Intrepid Potash, Inc. (NYSE:IPI) announced the date and time for a conference call to discuss its Q1 2011 results.
The stocks of potash producers are predicted to outshine those of more nitrogen focused companies, due to what brokerage firm Goldman Sachs calls “peaking corn prices.” In a statement issued this past Monday, Goldman Sachs (NYSE:GS) noted that the current corn price of $6 to $7 per bushel is unsustainable.
The share prices of many potash and phosphate producers are battle-scarred this week, as instability in the Middle East and Africa has sent markets on a tailspin. One of the key markets impacted by the turmoil is the grain markets.
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