cyerman

UBS Raises PotashCorp and Agrium's Price Targets - Again

CRP is modified by Congress and the DOA may permit the inclusion of millions of acres currently reserved to support wildlife and environmental objectives. My question: is this change important enough to at first increase the demand for potash as more acres come under under cultivation but then with big time increaes in production would it potentially drive down commodity prices. Variables like Argentina, Australia China and the weather holding within historical norms. Might that big increase in production then drive down the demand for potash and other fertilizer products as commodity prices drop? Or is it just too problematic to rely on any changes in CRP to affect the demand side for potash and other fertilizers?