Potash Prices Finally Start to Crack - for Some
Farmers resist high prices and markets give way as international players see the writing on the wall.
Bryce Knorr
Published: Jun 17, 2009
The latest shoe to drop in the tumultuous fertilizer market appears to be potash, as farmers around the world stubbornly resist higher prices.
Two international players in the tightly controlled market announced more production cutbacks this week, in response to rising inventories of unsold product. And one — European producer K&S — also announced it was trimming prices from around $700 a ton to $550.
The dramatic move came after Potash Corp. late Tuesday announced another production curtailment. Since August of 2008 the company says it has cut production by around 5 million tons.
According to information on the Potash corporate Website, inventories held by North American producers were up again at the end of May, swelling to nearly double the previous five-year average. At the same time, prices paid by most producers have held steady, causing many to cut back applications this spring. The latest USDA survey of prices paid by Illinois farmers put the average for potash at $766 per ton, in a range of $695 to $850.
For more information see the FULL REPORT.
Permalink: Click here
Tagged: usda, fertilizer
|