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.
While higher grain prices are a positive for potash producer shares, the overall near term outlook for the sector is bleak; at least according to Goldman Sachs.
China’s recent growth slowdown put a huge dent in the commodities rally- but how will threats of stalling Chinese growth impact the potash market? Fortunately for potash, demand is not a China-only-story.
The underlying structure of the potash market is changing to reflect the new world economy, but one thing will stay the same; people need to eat. The long-term fundamentals of the potash market are supported by increasing populations around the world, and decreasing arable land.
Goldman Sachs released a report claiming that potash applications by farmers may remain below average this year. Companies were hoping for a blockbuster year, after last year’s economic collapse pushed farmers to postpone fertilizer applications.
Since the beginning of the year, the potash market has been tracking a slow route to recovery, and this has some investors crying the blues.
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 deal [...]
The world’s biggest fertilizer firm will offer its shareholders a non-binding “advisory vote” on the size of its executives’ pay packets.
For full story, click here
Potash Corp’s share price two years ago, on March 9, 2007, was $53.22—meaning the stock price could reasonably fall by another 15-20% merely to erase 24-month gains. If you go back 3 years, you’ll see that this is really a $25 stock… in a bull market!
For full story, click here
“Potash Corp. of Saskatchewan has been reporting excellent results, surpassing expectations,” says analyst Tom Slee, adding, “However, investors have savaged the stock.”
For full story, click here
Wednesday, July 28, 2010