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An analyst on Seeking Alpha argues potash prices will stay low while new low-cost capacity comes online and Saudi Arabian and Moroccan projects expand supply. The article says global potash shipments are expected to rise 2-6% to 61-64 million tonnes this year, with global capacity growing about 2.2 Mmt.
It recommends investors exit Potash Corp. (NTR/POT) until fertilizer fundamentals show a real turnaround.
Rising potash supply and capacity additions point to continued weak fertilizer pricing, which lowers input costs for farmers over time. For feed buyers the effect on grain and feed prices is indirect, so the price signal is limited.
seekingalpha.comJun 6, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
