strawtogold

Ten Reasons Why I'm Waiting to Buy PotashCorp

Your ignorance of the supply and demand position and economics of potash is apparent. You also may not be aware but the world demand for potage exceeds capacity by several million tonnes per year. Worldwide inventories are barely existent. While selling 100% of its capacity at prices that have risen 300% this year (including the December price rise to $1000 per tonne), China has bought minute volumes as it has drawn down its inventory to practically nothing.

The U.S. corn market no longer drives potash volumes and prices though you continue to spout this mindless dribble. The return for potash to farmers, even with price increases, is 3:1. In the BRIC countries, it is about 8:1 (you really should read the POT website to learn about the company and its products). A decline in corn prices does not change the economics of using fertilizer.

Where in the world did you get your knowledge that Agrium and Mosaic might overproduce and adversely impact prices? Every company in the world is producing at capacity. Did you mention that in 2 years, POT will increase capacity by 30% and in 5 years by 80% - done faster and at lower costs?

You have an obligation to fully research your analyses. You have failed.