Steady potash stockpiles fuel production cuts

Potash Investing News reports potash inventories being higher than an average of the last five years.

This data has prompted Potash Corp of Saskatchewan (TSX: POT), the world’s largest fertilizer producer, to further curtail potash production. The company said it plans to reduce 2009 potash output by an additional 1.5 million tonnes, bringing the total expected curtailments of operational capacity this year to at least 3.5 million tonnes. Potash Corp said it still expects a strong rebound in potash demand in the second half of 2009 that should continue into 2010.