Bloomberg reported that K+S, Europe's biggest potash producer, is willing to stake its credit ratings on funding a new mine because it believes that potash prices will be rebounding back to $400 per ton.
Articles Tagged "potash price"
Reuters reported that the world's largest potash miner by output, Uralkali, is expecting potash prices to rebound in 2014 after reaching a bottom level in terms of supply contracts with top consumer China.
The Wall Street Journal reported that in the fourth quarter of this year, Russia's Uralkali (MCX:URKA) plans to cut potash prices for compound fertilizer producers by 12.5 percent.
Recent farm sector strength has pushed potash sales higher even though there has been a slide in the price of potash. And despite the increasing revenue stream, many fertilizer and potash company stocks have reached 52-week lows.
The first US mad cow disease case in six years years has spooked the potash-reliant corn and grain market, while US soybean prices hit four-year highs on news of South American drought damage reports.
Recent contract renewals have given potash markets positive cues for a stronger than expected 2012. Long-term investment into potash infrastructure will help keep markets well supplied.
Despite recent concerns around the health of the Chinese economy, recent potash contracts from China have given hope for investors banking on rising food and crop prices.
Potash production remains stagnant as Potash Corp and Uralkali cull output in response to low farmer purchasing. However, short-term prospects look slightly positive as producers are certain global demand will pick up.
Recently, record-setting earnings have been the norm for fertilizer producers, however, late last month the markets were roiled by a quarterly earnings report by Mosaic, the world’s largest phosphate producer, which showed that profits missed analyst’s earnings per share (EPS) expectations.
Legislation passed on Thursday by the Canadian Federal Government will dissolve the Canadian Wheat Board.