How To Make Money in Potash?

With earnings now in from many of the potash producers what are we seeing in the potash markets?
After last year’s breakup of BPC we all know that potash prices are down from last year but sales are strong. The North American producers saw strong domestic markets, but export sales were negatively affected by the ability to get product to port, due to logistic issues. Agrium reported that domestic sales increased by 47 percent, PotashCorp indicated that domestic sales increased by 24 percent, and Mosaic showed a 20 percent increase in total sales, presumably most of this due to North America. Additionally Intrepid Potash showed a 30 percent increase from this time last year. Offshore producers Uralkali, and Belaruskali are also indicating that sales are improving from this time last year. Uralkali has reported a five percent increase, and Belaruskali has reported March sales of over 1MM tonnes, the “highest figure on record”. Projections for world consumption vary, but total demand is projected to be in range of 57 million tonnes for 2014. One of the major producers is even indicating the demand for potash to be in sixty million tonne range for 2015.
Prices in the North American and other parts of the world are also showing signs of improvement. Historically there has been a correlation between the cost of food and agricultural products and the price of crop nutrients. With food prices up for 2014, this trend is likely to continue.
If you would like to discuss the crop nutrient markets or a specific project, please contact Schlumpberger Inc

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