Duck Drake

Buy, Sell or Hold: What to Do with Potash Corp.?

Favorable weather?? I disagree. In the corn belt, that is, Iowa, Illinois, and parts of Indiana, flooding has removed a significant amount of topsoil. Many farmers are extreemly concerned about this years yield and more importantly, next year. I've personally seen pockets of good corn, but the majority of Illinois and Indiana will have well below average yield. Iowa is much worse due to the major flooding there this spring. This means fertilizer... and lots of it...to build the ground back up. So... this year....watch corn and soybean prices. Remember, Ethanol is still being produced, and its not over yet. Then, .... next year... hold on to your fertilizer hat! Demand will outstrip supply by a wide margin. Even longer term,... don't forget..we have the most productive farmland in the world, but its not enough to feed the growing emerging economies. Therefore, POT is a long term hold. Accumulate on any dips. Mosiac, Monsanto, ADM and BG are in the same camp.