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The Q4 potash market will lag due to delayed contracts in India and China into 2013, which has...

The Q4 potash market will lag due to delayed contracts in India and China into 2013, which has led Potash (POT) to an inventory shutdown, but North American demand remains normal despite worries that farmers would use less potash due to early harvest and drought, Dundee Capital's Carolyn Dennis says. Overall potash demand growth will exceed 3% in the coming years, she says.
Comments (2)
  • Michael Bryant
    , contributor
    Comments (5619) | Send Message
     
    "...worries that farmers would use less potash due to early harvest and drought..."

     

    Makes no sense. If there was a drought which lowered yields, farmers will try to make up those yields by buying more fertilizer.
    5 Nov 2012, 05:13 PM Reply Like
  • vallies
    , contributor
    Comments (351) | Send Message
     
    China wants potash at a 26% discount. The Farm Bill was pushed back till after the election. Farmers already have purchased and are sitting and waiting, it's not ethanol; but new measures are in place in the U.S. at getting more yield per acre. MOS has DAP& MAP to do this, but revenues are slipping, this could be do to the hurricanes and problems it has in it's Louisiana plant. Drought dry docked some of its shipments this year. The previous year storms hurt its sulfur plant in that area. Let's hope that they have the rails in place, and have a better, to deal with the storms, sulpher plant. They can't keep using these types of excuses. The CEO didn't know to use the rails with last years drought???. They did increase the dividend to .25 cents for long term investors, which I am. So when it rolls down to the mid 40's, I buy a little, top 50's, sell a little, bringing my cost average down and improving my yield. We have German factory orders for September, the Euro is approaching 27.50, it may have a pop at that level, especially with a Obama victory, but I think the Euro will further drag lower, bringing this space lower. If this happens CF is your play, it loves to bounce down and around the 150., 138. area. You want this stock with an Obama victory, but if we get a government stalemate, lame duck, fiscal cliff, Moody's down grade on U.S. debt, who knows how cheap things will get.
    5 Nov 2012, 10:06 PM Reply Like
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