After Weathering the Storm, Potash looks to Sunny Skies

After weathering a tumultuous 2009; potash producers are holding their breath in anticipation of a better 2010. Analysts are confident that producers will get what they desire; predicting demand for potash will bounce back this year as purchasers return to the market.

The recent drawdown in potash inventories supports the suspected rebound.  North American potash inventories fell sharply in January, falling by over 550,000 tonnes to roughly 2.5 million tonnes, the lowest level since December 2008. North American inventories have now fallen substantially for a third straight month and inventories are now only 6 per cent above the prior five-year average. Tightening inventories will push potash prices higher.

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