Potash has been the one part of the fertilizer complex that's been at least somewhat resistant to the collapse in prices since values reached all-time record highs in September. However, signs demand is softening quickly are forcing manufacturers to curtail production.
The latest to announce cutbacks is the Potash Corp., which today said it would 2009 trim production by 2 million metric tons starting in January to balance supply to market demand.
"Farmers, like any other consumer, are feeling the impact of the global financial crisis," the company said in a statement.
"We anticipate slow potash demand through the first quarter of 2009," said Potash Corp President and CEO Bill Doyle. "Beyond this, we see demand accelerating through the balance of the year as farmers deplete existing stocks and work to rebuild global grain inventories from extremely low levels."
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