Falling phosphate prices reduced Mosaic’s profits in the most recent quarter, but Jim Prokopanko, the company’s CEO, expects 2013 to bring “record global phosphate shipments.”
Chinese and Indian potash buyers have said they want to see lower prices for potash and will wait until they get them.
India is pushing potash and phosphate suppliers to lower fertilizer prices, citing that a weakening currency and climbing potash and phosphate prices are pushing Indian farmers out of the market.
India is just one of the many nations in the world dealing with a food crisis. While the country is experiencing unprecedented population growth, the amount of arable land is shrinking, thereby increasing the need for fertilizers.
Potash’s value was hard hit by the economic downturn as investors abandoned agricultural commodities. The recovery for the crop nutrient has recently been underway; and with spring planting in the northern hemisphere just around the corner- things are bound to heat up.
Potash Investing News reports potash prices on the low side.
International Potash Co, the marketing arm of Russia’s biggest producer, OAO Silvinit, agreed last week to supply India with 850,000 tonnes, by March 10.
This benchmark low price is about 26 per cent below a previous low, and other major consumers including