The shares of potash producers rallied Wednesday, following the US Department of Agriculture’s forecast that corn stock would fall to its lowest level since 1996. The news sent grain futures higher, lifting demand for potash and other fertilizers.
An increased demand for potash as crop prices rise has potash poised to be a top commodity pick in 2011, according to the recent report by Scotiabank.
Dmitri Rybolovlev’s recent sale of 53.2 percent of Uralkai stock to an investors group, led by Mr. Kerminov, has led to rumours of a significant merger in the potash industry. About $11 billion of fertilizer and agricultural-chemicals mergers and acquisitions have been announced or completed since the end of 2008.
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